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The Incidence and Persistence of Corruption in Economic Development

  • K Blackburn
  • N Bose
  • M E Haque

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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Paper provided by Economics, The Univeristy of Manchester in its series Centre for Growth and Business Cycle Research Discussion Paper Series with number 34.

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Length: 26 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:man:cgbcrp:34
Contact details of provider: Postal: Manchester M13 9PL
Phone: (0)161 275 4868
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