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Governance, productivity and economic development

Author

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  • Le Van, Cuong
  • Pham, Ngoc-sang
  • Pham, Thi Kim Cuong
  • Tran-Nam, Binh

Abstract

This paper explores the interplay between transfer policies, R&D, corruption, and economic development using a general equilibrium model with heterogeneous 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

  • Le Van, Cuong & Pham, Ngoc-sang & Pham, Thi Kim Cuong & Tran-Nam, Binh, 2025. "Governance, productivity and economic development," MPRA Paper 125349, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:125349
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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