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The Effects Of Rent Seeking Activities On Economic Growth In Middle-Income Countries

Author

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  • Zi Wen Vivien Wong

    (Universiti Tunku Abdul Rahman, Malaysia)

  • Fanyu Chen

    (Universiti Tunku Abdul Rahman, Malaysia)

  • Siong Hook Law

    (Universiti Putra Malaysia, Malaysia)

  • Normaz Wana Ismail

    (Universiti Putra Malaysia, Malaysia.)

Abstract

This study investigates the effects of rent seeking activities on economic growth in 53 middle-income countries. Our data span the period 2011 to 2020. We use the generalized method of moments estimator to examine the effects of rent-seeking activities on economic growth. Our study also includes several control variables, namely democratic accountability, public debt, human capital, foreign direct investment, capital stock, population, research and development expenditure and trade openness. The empirical results suggest that rent-seeking activities impede economic growth in middle-income ountries

Suggested Citation

  • Zi Wen Vivien Wong & Fanyu Chen & Siong Hook Law & Normaz Wana Ismail, 2022. "The Effects Of Rent Seeking Activities On Economic Growth In Middle-Income Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 25(2), pages 215-234, August.
    • Handle: RePEc:idn:journl:v:25:y:2022:i:2e:p:215-234
    DOI: https://doi.org/10.21098/bemp.v25i2.1863
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    More about this item

    Keywords

    Rent-seeking; Economic growth; System generalized method of moment estimator; Middle-income trap; Middle-income countries;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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