The relationship between corruption and public investment at the municipalities’ level in Indonesia
This research is conducted to quantitatively measure the relationship between corruption and public investment at municipalities’ level in Indonesia. According to Nash Equilibrium derived from mixed strategies, the relationship between corruption and public investment can be both positive and negative depending on the level of the corruption Index. Moreover, the econometric estimations from cross section data and pooled data consistently confirm that the relationship between corruption and public investment is in non linear quadratic form. It was found that the public investment reaches the lowest level when the corruption index ranges from 4.42-4.64.
|Date of creation:||Mar 2010|
|Date of revision:||Apr 2010|
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Web page: https://mpra.ub.uni-muenchen.de
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- Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
- Gary S. Becker, 1968.
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University of Chicago Press, vol. 76, pages 169.
- Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
- Macrae, John, 1982. "Underdevelopment and the economics of corruption: A game theory approach," World Development, Elsevier, vol. 10(8), pages 677-687, August.
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