Corrupt Bureaucracy and Growth

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Corrupt Bureaucracy and Growth

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Djumashev, Ratbek

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Ratbek Dzhumashev

Abstract

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2082.

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Date of creation: 2006
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Handle: RePEc:pra:mprapa:2082

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Find related papers by JEL classification:
H40 - Public Economics - - Publicly Provided Goods - - - General
D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-03-10 (All new papers)
NEP-DEV-2007-03-10 (Development)
NEP-PBE-2007-03-10 (Public Economics)
NEP-POL-2007-03-10 (Positive Political Economics)
NEP-REG-2007-03-10 (Regulation)

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Other versions:
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Other versions:
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