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The incidence and persistence of corruption in economic development

  • Blackburn, Keith
  • Bose, Niloy
  • Emranul Haque, M.

Economic development and bureaucratic corruption are determined jointly in a dynamic general equilibrium model of growth, bribery and tax evasion. Corruption arises from the incentives of public and private agents to conspire in the concealment of information from the government. These incentives depend on aggregate economic activity which, in turn, depends on the incidence of corruption. The model produces multiple development regimes, transition between which may or may not occur. In accordance with recent empirical evidence, the relationship between corruption and development is predicted to be negative.

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Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 30 (2006)
Issue (Month): 12 (December)
Pages: 2447-2467

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Handle: RePEc:eee:dyncon:v:30:y:2006:i:12:p:2447-2467
Contact details of provider: Web page: http://www.elsevier.com/locate/jedc

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