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Rent Seeking and Growth: The Case of Growth through Human Capital Accumulation

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  • Pual Pecorino

Abstract

This paper follows the work of H. Uzawa (1965) and R. E. Lucas (1988) by presenting an endogenous growth model with human capital accumulation as the engine of growth. Agents make time allocation decisions in an economy where quantitative restrictions are employed in the trade regime. Agents may allocate time to obtain valuable import licences. The effect of this activity on the growth rate is found to be dependent upon whether agents specialize in the rent-seeking activity. When agents do not specialize, the rent-seeking activity reduces growth by reducing the incentive to accumulate productive human capital.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 25 (1992)
Issue (Month): 4 (November)
Pages: 944-56

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Handle: RePEc:cje:issued:v:25:y:1992:i:4:p:944-56

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Cited by:
  1. us Swaleheen, Mushfiq, 2008. "Corruption and saving in a panel of countries," Journal of Macroeconomics, Elsevier, Elsevier, vol. 30(3), pages 1285-1301, September.
  2. Barreto, Raul A., 2000. "Endogenous corruption in a neoclassical growth model," European Economic Review, Elsevier, Elsevier, vol. 44(1), pages 35-60, January.
  3. Mushfiq Swaleheen, 2011. "Economic growth with endogenous corruption: an empirical study," Public Choice, Springer, Springer, vol. 146(1), pages 23-41, January.
  4. Natkhov Timur & Polishchuk Leonid, 2012. "Institutions and the Allocation of Talent," HSE Working papers, National Research University Higher School of Economics WP BRP 15/EC/2012, National Research University Higher School of Economics.
  5. Raul A. Barreto & James Alm, 2001. "Corruption, Optimal Taxation and Growth," School of Economics Working Papers 2001-03, University of Adelaide, School of Economics.
  6. Chakraborty, Bidisha & Gupta, Manash Ranjan, 2009. "Human capital, inequality, endogenous growth and educational subsidy: A theoretical analysis," Research in Economics, Elsevier, Elsevier, vol. 63(2), pages 77-90, June.

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