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Governance, productivity and economic development

Author

Listed:
  • Cuong Le Van
  • Ngoc Sang Pham
  • Thi Kim Cuong Pham
  • Binh Tran-Nam

Abstract

This paper explores the interplay between transfer policies, R&D, corruption, and economic development using a general equilibrium model with hetero-generous agents and a government. The government collects taxes, redistributesfiscal revenues, and undertakes public investment (in R&D, infrastructure, etc.).Corruption is modeled as a fraction of tax revenues that is siphoned off and removed from the economy. We first establish the existence of a political-economicequilibrium. Then, using an analytically tractable framework with two privateagents, we examine the effects of corruption and evaluate the impact of variouspolicies, including redistribution and innovation-led strategies.

Suggested Citation

  • Cuong Le Van & Ngoc Sang Pham & Thi Kim Cuong Pham & Binh Tran-Nam, 2025. "Governance, productivity and economic development," EconomiX Working Papers 2025-35, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2025-35
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    File URL: https://economix.fr/pdf/dt/2025/WP_EcoX_2025-35.pdf
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    More about this item

    Keywords

    Corruption; governance; R&D investment; economic development; productivity; general equilibrium.;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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