Empirical Economic Bulletin, An Undergraduate Journal


This paper investigates the possibility of the institutional quality of a country having an effect on income inequality and economic growth in Latin American Countries. The study incorporates the gini variable and growth rates of GDP in each country to examine the influence of corruption on the various countries throughout Latin America. Looking at previous research it has been found that corruption is positively correlated with income inequality and negatively correlated with economic growth. The variable for corruption in this study however measures the control of corruption in each country, so we will be looking at the institutional quality and its effects. It would be expected that control of corruption would have a negative relationship with income inequality and a positive relationship with economic growth.