The Effect of Coca and FDI on the Level of Corruption in Bolivia

ANTONIO BOJANIC
LATIN AMERICAN ECONOMIC REVIEW 23.11 (2014)

This paper estimates the impact that FDI inflows and the price of coca leaves have on the level of corruption in Bolivia. The findings reveal that a less controlled, more permissive market for coca leaves actually reduces the level of corruption in the country, supporting the hypothesis that the way to a less corrupt Bolivia is by lowering government intervention into this controversial market.