Corruption and Economic Growth: Latin American Countries

Corruption is one of negative social traits that may occur in the government, by making use of their authority to gain personal benefits for the public’s cost in return. There are many opinions regarding the wrong and right of corruption, as the arguments are divided in two opposing group; the ‘sand’ and the ‘grease’ of economic growth’s wheel. These term means hindering and stimulating the economic growth respectively. Using both formal and empirical analyses we will find the impact of corruption towards 18 Latin American countries. We find corruption to be damaging the economic growth based on fixed effect analysis with panel data.