UC Berkeley

The Pacific Alliance is an economic block formed by Chile, Colombia, Mexico, and Peru in 2011. Driven by the shared goal of accelerating economic development through market liberalization and the preeminence of both democracy and the rule of law, it has gradually established common economic policies and institutions, including a venture capital fund and an integrated stock exchange—the Mercado Integrado Latinoamericano (MILA). Despite these and other accomplishments, corporate law and governance remain within the jurisdictional borders of the Alliance’s member States. This context offers a unique opportunity to critically review and test contemporary accounts on the extent to which corporate law and governance can contribute to economic development by promoting three objectives: sustainable corporate practices, entrepreneurship, and private firms’ access to external finance.

This dissertation comprises three essays, each of which uses a different method—functional legal analysis, econometrics, and leximetrics, respectively—to dissect these questions individually. Together, they demonstrate that, beyond the regulation of entry and shareholder protection, corporate law and governance can induce meaningful changes to corporate behavior with an impact on economic development determinants. The essays also attest that the Pacific Alliance has not done enough to promote these objectives.