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Corruption et allocation optimale de l'investissement public

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  • David de la Croix
  • Clara Delavallade

Abstract

In this paper, we analyze one channel through which corruption hampers growth: public investment can be distorted in favour of specific types of spending for which rent-seeking is easier and better concealed. To study this distortion, we propose an optimal growth model where a planner chooses the composition of public spending subject to an incentive constraint reflecting households? choice between productive activity and rent-seeking. We test the implications of the model on a panel of countries estimating a system of equations with instrumental variables. Countries with a failing legal system have higher levels of corruption, spend relatively more in physical capital than in education and health, and they grow slower, in particular if the political power is highly concentrated. Classification JEL : O41, H50, D73.

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Bibliographic Info

Article provided by Presses de Sciences-Po in its journal Revue économique.

Volume (Year): 58 (2007)
Issue (Month): 3 ()
Pages: 637-647

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Handle: RePEc:cai:recosp:reco_583_0637

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Web page: http://www.cairn.info/revue-economique.htm

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Cited by:
  1. Simplice A, Asongu & Oasis, Kodila-Tedika, 2013. "Fighting African Conflicts and Crimes: Which Governance Tools Matter?," MPRA Paper 44044, University Library of Munich, Germany.
  2. Asongu, Simplice A. & Kodila-Tedika, Oasis, 2013. "Crime and conflicts in Africa: consequences of corruption?," European Economic Letters, European Economics Letters Group, vol. 2(2), pages 50-55.
  3. G. d'Agostino & J.P Dunne & L. Pieroni, 2012. "Government spending, corruption and economic growth," SALDRU Working Papers 74, Southern Africa Labour and Development Research Unit, University of Cape Town.
  4. Dridi, Mohamed, 2013. "Corruption and Economic Growth: The Transmission Channels," MPRA Paper 47873, University Library of Munich, Germany.
  5. Asongu, Simplice & Jellal, Mohamed, 2014. "International aid corruption and fiscal behavior policy," MPRA Paper 57192, University Library of Munich, Germany.
  6. Kodila Tedika, Oasis, 2012. "Consequences De La Corruption : Panorama Empirique
    [Consequences of Corruption : Empirical survey]
    ," MPRA Paper 41482, University Library of Munich, Germany.

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