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Governance, productivity and economic development

Author

Listed:
  • Cuong Le Van

    (IPAG Business School)

  • Ngoc-Sang Pham

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

  • Thi Kim Cuong Pham

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Binh Tran-Nam

    (UNSW Business School - UNSW - University of New South Wales [Sydney])

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, redistributes fiscal 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-economic equilibrium. Then, using an analytically tractable framework with two private agents, we examine the effects of corruption and evaluate the impact of various policies, 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," Working Papers hal-05164693, HAL.
    • Handle: RePEc:hal:wpaper:hal-05164693
    Note: View the original document on HAL open archive server: https://hal.science/hal-05164693v1
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