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Growth and Rent Dissipation: The Case of Kenya

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  • Bigsten, Arne
  • Moene, Karl Ove

Abstract

Poor growth performance in Kenya is rooted in the ruling elite's coalition-building to stay in power. To obtain loyal followers the public sector is over-manned. Dishonesty and rule-bending are allowed to develop within an administrative culture where politicians and top bureaucrats acquire private businesses and landholdings (straddling). Thus politics become coupled with corruption and particularistic business interests. We outline a stylized endogenous growth model to structure the discussion of why public sector surplus labor, corruption and straddling may be so harmful to economic growth in Kenya. Copyright 1996 by Oxford University Press.

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Bibliographic Info

Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 5 (1996)
Issue (Month): 2 (June)
Pages: 177-98

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Handle: RePEc:oup:jafrec:v:5:y:1996:i:2:p:177-98

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Cited by:
  1. Bigsten , Arne & Levin, Jörgen, 2000. "Growth, Income Distribution, and Poverty: A Review," Working Papers in Economics 32, University of Gothenburg, Department of Economics.
  2. Biru Paksha Paul, 2010. "Does corruption foster growth in Bangladesh?," International Journal of Development Issues, Emerald Group Publishing, vol. 9(3), pages 246-262, July.
  3. Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2003. "Predator or prey?: Parasitic enterprises in economic development," European Economic Review, Elsevier, vol. 47(2), pages 275-294, April.
  4. Congdon Fors, Heather & Olsson, Ola, 2005. "Endogenous Institutional Change After Independence," Working Papers in Economics 163, University of Gothenburg, Department of Economics.
  5. Roumanias, Costas, 2007. "Is collusion of corrupt agents welfare increasing?," Economics Letters, Elsevier, vol. 94(3), pages 421-425, March.
  6. Susan-Rose Ackerman, 1997. "Corruption, Infefficiency and Economic Growth," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 24, pages 3-20.
  7. Halvor Mehlum & Kalle Moene & Ragnar Torvik, 2004. "Parasites," Development and Comp Systems 0406003, EconWPA.
    • Mehlum, Halvor & Moene, Karl O. & Torvik, Ragnar, 2003. "Parasites," Memorandum 16/2003, Oslo University, Department of Economics.
  8. Olsson, Ola, 2003. "Conflict Diamonds," Working Papers in Economics 86, University of Gothenburg, Department of Economics, revised 30 Nov 2003.
  9. Christopher Adam & Stephen A. O`Connell, 1997. "Aid, taxation and development: analytical perspectives on aid effectiveness in Sub-Saharan Africa," Economics Series Working Papers WPS/1997-05, University of Oxford, Department of Economics.
  10. Bigsten, Arne, 1998. "Can Aid Generate Growth in Africa?," Working Papers in Economics 3, University of Gothenburg, Department of Economics.
  11. Bedasso, Biniam, 2012. "Lords of Uhuru: the political economy of elite competition and institutional change in post-independence Kenya," MERIT Working Papers 042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  12. Bigsten, Arne & Durevall, Dick, 2002. "Is Globalisation Good for Africa?," Working Papers in Economics 67, University of Gothenburg, Department of Economics.
  13. Bigsten, Arne, 2001. "Relevance of the Nordic Model for African Development," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  14. Farida, Moe & Ahmadi-Esfahani, Fredoun Z., 2008. "Corruption and economic growth in Lebanon," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6043, Australian Agricultural and Resource Economics Society.

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