The relationship between corruption and public investment at the municipalities’ level in Indonesia
AbstractThis research is conducted to quantitatively measure the relationship between corruption and public investment at municipalities’ level in Indonesia. According to Nash Equilibrium derived from mixed strategies, the relationship between corruption and public investment can be both positive and negative depending on the level of the corruption Index. Moreover, the econometric estimations from cross section data and pooled data consistently confirm that the relationship between corruption and public investment is in non linear quadratic form. It was found that the public investment reaches the lowest level when the corruption index ranges from 4.42-4.64.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 23736.
Date of creation: Mar 2010
Date of revision: Apr 2010
Corruption; Public Investment; Game Theory; Regional Development;
Find related papers by JEL classification:
- H0 - Public Economics - - General
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-17 (All new papers)
- NEP-PBE-2010-07-17 (Public Economics)
- NEP-POL-2010-07-17 (Positive Political Economics)
- NEP-SEA-2010-07-17 (South East Asia)
- NEP-SOC-2010-07-17 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Crime and Punishment: An Economic Approach,"
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National Bureau of Economic Research, Inc.
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- Macrae, John, 1982. "Underdevelopment and the economics of corruption: A game theory approach," World Development, Elsevier, vol. 10(8), pages 677-687, August.
- Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
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