Corruption, growth and institutions: is there a sacrifice rate in Latin America?

Abstract

This research deals with corruption and growth in Latin America. Given the region’s institutional volatility, constant change and lack of compliance with regulations, the question arises as to whether there is a trade‑off between growth and corruption control at a certain level of institutional capacity. A panel analysis of 26 Latin American countries (2002‑2021) was conducted using robust dynamic panel data models to test the hypothesis. The results revealed a quadratic relationship between growth and corruption, considering the endogeneity between institutions, corruption and growth, using Autoregressive Vector panel data.