Empirical Economic Bulletin, An Undergraduate Journal


This paper investigates the influence that institutional quality factors have on the power or spread of inequality across low-income countries, as opposed to high income countries. As such, an empirical study and analysis will be conducted to measure the impact of the following institutional quality factors: control of corruption, government effectiveness, political stability and absence of violence/terrorism, regulatory quality, rule of law, and voice and accountability. Specifically, cross-sectional or panel data from the World Bank will be utilized to look at upper-middle income nations in Latin America. The factors will be simultaneously measured against the Gini Coefficient. These countries include Brazil, Argentina, the Dominican Republic and Peru from 2008 – 2022. Results from the panel data will show that a variety of institutional quality factors have significant influence over inequality factors and many variables contribute to this disparity, including Foreign Direct Investment and Global Competitiveness.