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Corruption, remittances, and public goods: A unified framework

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  • Luis Gautier
  • Puneet Vatsa

Abstract

Remittances are an important source of income for the very countries afflicted by high levels of corruption. However, corruption undermines the development potential of remittances. With this in mind, we propose policy reforms that harness the potential of remittances while mitigating corruption. Unlike previous studies, we point to two channels: (1) the corrupt government's trade‐off between its financial interests (corruption), the provision of a public good, and the gains from a higher inflow of remittances; and (2) the household's consumption of the public good relative to that of the privately obtained substitute of the public good.

Suggested Citation

  • Luis Gautier & Puneet Vatsa, 2023. "Corruption, remittances, and public goods: A unified framework," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 1078-1085, October.
    • Handle: RePEc:bla:buecrs:v:75:y:2023:i:4:p:1078-1085
    DOI: 10.1111/boer.12396
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    References listed on IDEAS

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    1. Muhammad Tariq MAJEED*, 2016. "MIGRANT REMITTANCES AND CORRUPTION: An Empirical Analysis," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 26(1), pages 15-41.
    2. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    3. Faisal Z. Ahmed, 2013. "Remittances Deteriorate Governance," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1166-1182, October.
    4. Berdiev, Aziz N. & Kim, Yoonbai & Chang, Chun-Ping, 2013. "Remittances and corruption," Economics Letters, Elsevier, vol. 118(1), pages 182-185.
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