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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.

Suggested Citation

  • Bigsten, Arne & Moene, Karl Ove, 1996. "Growth and Rent Dissipation: The Case of Kenya," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 5(2), pages 177-198, June.
  • Handle: RePEc:oup:jafrec:v:5:y:1996:i:2:p:177-98
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    Citations

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    Cited by:

    1. Mehlum, Halvor & Moene, Karl O. & Torvik, Ragnar, 2003. "Parasites," Memorandum 16/2003, Oslo University, Department of Economics.
    2. Bigsten, Arne & Durevall, Dick, 2002. "Is Globalisation Good for Africa?," Working Papers in Economics 67, University of Gothenburg, Department of Economics.
    3. Congdon Fors, Heather & Olsson, Ola, 2007. "Endogenous institutional change after independence," European Economic Review, Elsevier, vol. 51(8), pages 1896-1921, November.
    4. Roumanias, Costas, 2007. "Is collusion of corrupt agents welfare increasing?," Economics Letters, Elsevier, vol. 94(3), pages 421-425, March.
    5. Biru Paksha Paul, 2010. "Does corruption foster growth in Bangladesh?," International Journal of Development Issues, Emerald Group Publishing, vol. 9(3), pages 246-262, September.
    6. Bigsten , Arne & Levin, Jörgen, 2000. "Growth, Income Distribution, and Poverty: A Review," Working Papers in Economics 32, University of Gothenburg, Department of Economics.
    7. Bigsten, Arne, 2001. "Relevance of the Nordic Model for African Development," WIDER Working Paper Series 131, World Institute for Development Economic Research (UNU-WIDER).
    8. Susan-Rose Ackerman, 1997. "Corruption, Infefficiency and Economic Growth," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 24, pages 3-20.
    9. Bigsten, Arne, 1998. "Can Aid Generate Growth in Africa?," Working Papers in Economics 3, University of Gothenburg, Department of Economics.
    10. Kalle Moene & Tina Søreide, 2015. "Good Governance Facades," CMI Working Papers 2, CMI (Chr. Michelsen Institute), Bergen, Norway.
    11. M Ncube, 2001. "The Crowding Out Effect In A Developing Country'S Labour Market," South African Journal of Economics, Economic Society of South Africa, vol. 69(3), pages 474-500, September.
    12. Olsson, Ola, 2007. "Conflict diamonds," Journal of Development Economics, Elsevier, vol. 82(2), pages 267-286, March.
    13. 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.
    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.
    15. 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).
    16. Christopher S. Adam & Stephen O'Connell, 1997. "Aid, taxation and development: analytical perspectives on aid effectiveness in sub-Saharan Africa," CSAE Working Paper Series 1997-05, Centre for the Study of African Economies, University of Oxford.

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