Djumashev, Ratbek (2006): Corrupt Bureaucracy and Growth.
Download (237kB) | Preview
In this paper, we analyze implications of corruption on growth. We extend existing growth models by incorporating ubiquitous corruption as a by-product of the public sector. Corruption affects both taxation and public good provision, and therefore causes income redistribution and inefficiencies in the public sector. These effects of corruption lead to lower growth through distortions of investment incentives and resources allocation.
|Item Type:||MPRA Paper|
|Institution:||Department of Economics, Monash University|
|Original Title:||Corrupt Bureaucracy and Growth|
|Keywords:||Corruption; growth; public goods; tax evasion|
|Subjects:||H - Public Economics > H4 - Publicly Provided Goods > H40 - General
D - Microeconomics > D9 - Intertemporal Choice and Growth > D92 - Intertemporal Firm Choice and Growth, Financing, Investment, and Capacity
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E60 - General
|Depositing User:||Ratbek Dzhumashev|
|Date Deposited:||08. Mar 2007|
|Last Modified:||12. Feb 2013 18:47|
Abed, George T. and Sanjeev Gupta, eds (2002) Governance, corruption, and economic performance. Washington, D.C: International Monetary Fund. Acconcia, A. and Martina R. d'Amato (2003) Corruption and Tax Evasion with Competitive Bribes. CSEF Working Paper, , Naples: University of Naples. Aidt, Toke S (2003) Economic Analysis of Corruption: a Survey. the Economic Journal 113 F632-F652. Alam, Shahid (1989) Anatomy of Corruption: An Approach to the Political Economy of Underdevelopment. American Journal of Economics and Sociology 48, 441-456. Alesina, A. and G. M. Angeletos (2005) Corruption, inequality, and fairness. Journal of Monetary Economics 52, 1227-1244. Ali, Abdweli M. and Hodan Said Isse (2003) Determinants of Economic Corruption: A Cross-Country Comparison. Cato Journal 22, 449-466. Barelli, Paulo and Samuel de Abreu Pessôa (2003) A model of Capital Accumulation and Rent seeking. Penn CARESS Working Papers. Barreto, R. A. (2000) Endogenous corruption in a neoclassical growth model. European Economic Review 44, 35-60. Barro, Robert J (1990) Government spending in a Simple Model of Endogenous Growth. The Journal of Political Economy 98, S103-S125. Barro, Robert J. and Xavier Sala-i-Martin (1992) Public finance in Models of Economic Growth. Review of Economic Studies 59, 645-661. Blackburn, Keith, Niloy Bose and M. Emranul Haque (2002) Endogenous Corruption in Economic Development. The University of Manchester, Centre for Growth and Business Cycle Research, DPS 022. Blackburn, Keith, Niloy Bose and M. Emranul Haque (2005) Public Expenditures, Bureaucratic Corruption and Economic Development. The University of Manchester, Centre for Growth and Business Cycle Research, DPS 053. Chen, Been-Lon (2003) Tax Evasion in a Model of Endogenous Growth. The Review of Economic Dynamics 6 318-403. Ehrlich, Isaac and Francis T. Lui (1999) Bureaucratic Corruption and endogenous Economic Growth. The Journal of Political Economy 107, 270-S293. Eichhorn, Christoph (2004) Tax Evasion and Economic Growth. Swiss Society of Economics and Statistics. Guriev, Sergei (2004) Red tape and corruption. Journal of Development Economics 73, 489-504. Huntington, Samuel P. (1968) Political Order in Changing Societies. New Haven, CT: Yale University Press. Kaufmann, D., Wei, S.J. (1999) Does 'grease money" speed up the wheels of commerce? NBER Working Paper Series 7093: NBER. Keefer, Philip and Stephen Knack (1997) Why don't poor countries catch up? A cross-national test of instutitional explanation. Economic Inquiry 35, 590-602. Keefer, Philip and Stephen Knack (2002) Rent-seeking and Policy Distortions when Property Rights are Insecure. The World Bank, WPS 2910 Knack, Stephen and Philip Keefer (1995) Institutions and economic performance: cross-country test using alternative institutional measures. Economics and Politics 7, 207-227. Leff, Nathaniel (1964) Economic Development through Bureaucratic Corruption. American Behavioral Scientist 8 8-14. Lin, Wen-Zhung and Cheng-Chen Yang (2001) A dynamic portfolio choice model of tax evasion: Comparative statics of tax rates and its implication for economic growth. Journal of Economic Dynamics and Control 25, 1827-1184. Lui, F. T (1985) An Equilibrium Queuing Model of Bribery. Journal of Political Economy, 760-781. Lui, F. T. (1996) Three aspects of corruption. Contemporary Economic Policy 14, 26-29. Mauro, Paolo (1995) Corruption and Growth. Quarterly Journal of Economics 110, 681-712. - 22 - Mauro, Paolo (2002) The persistence of corruption and slow economic growth. Washington, D.C.: International Monetary Fund, Research Department. Ng, Yew-Kwang (2000) Efficiency, equality and public policy: With a case for higher public spending. New York, London: St. Martin's Press; Macmillan Press. Rivera-Baitiz, Francisco L (2002) Governance, and Economic Growth: Theory and Evidence. Review of Development Economics 6, 225-247. Shleifer, Andrei and Robert W Vishny (1993) Corruption. The Quarterly Journal of Economics 108, 599-617. Tanzi, Vito and Hamid Davoodi (2000) Corruption, Public Investment and Growth. Policies, institutions and the dark side of economics, pp. 154-170. Cheltenham, U.K. and Northampton, Mass.: Elgar. Tanzi, Vito and Hamid R. Davoodi (1998) Roads to nowhere : how corruption in public investment hurts growth. Washington, D.C.: International Monetary Fund. Tanzi, Vito, Hamid Reza Davoodi and International Monetary Fund. Fiscal Affairs Dept. (1997) Corruption, public investment, and growth. Washington, D.C.: International Monetary Fund, Fiscal Affairs Dept.