Two sides of the same coin or two different coins? Exploring the duality of corruption in Latin America (2021)

The ambiguous phenomenon of corruption has long b een the cause of great theoretical debate ineconomics. By using Structural Equation Modelling, with the two types of corruption as a latent variable, this paper employs causal and indicative variables specific to the Latin American region to test for rent seeking and systemic corruption in th e period between 1980-2018. The findings provide evidence for two types of corruption, one generated by greed, and the other a solution to market failures. Such results support the view that corruption encompasses a complex set of social behaviours.

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Hugo Ella, Savage David A., Schneider Friedrich, Torgler Benno