Corporate governance distortions delay or even halt a country’s transformation into a modern innovation economy. We investigate the mechanism through a growth model that allows for agency issues within firms. Governance distortions raise the cost of investment and depress the incentives to set up new firms. Modest differences in governance account for large gaps in income: A 32 percent investment cost differential can explain the secular decline of Latin America income relative to that of the USA, and implies an industrialization delay of a third of a century. We obtain similar results for a large number of countries and macro-regions.

中文翻译：

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公司治理与产业化

公司治理扭曲会延迟甚至停止一个国家​​向现代创新经济的转型。我们通过允许企业内部代理问题的增长模型来研究该机制。治理扭曲会增加投资成本，并抑制建立新公司的动机。治理方面的适度差异造成了收入的巨大差距：32％的投资成本差异可以解释拉丁美洲相对于美国收入的长期下降，这意味着工业化延迟了三分之一个世纪。我们在许多国家和宏观地区都获得了类似的结果。