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Corruption, Military Spending and Growth

  • Giorgio d'Agostino

    (Università degli Studi di Roma and UWE, Bristol)

  • Luca Pieroni

    ()

    (University of Perugia and UWE, Bristol)

  • J Paul Dunne

    ()

    (University of the West of England and University of Cape Town)

This paper considers the complementary effect of corruption and military spending on economic growth, analyzing both the direct impact of public spending and effect of allocating resources between categories of public spending within the framework of an endogenous growth model. The non-linearities that emerge from are the result of the links between the components of public spending, corruption and economic growth. The main findings of the empirical analysis confirm the expectation that corruption and military burden lower the growth rate of GDP per capita. They also suggest that when the the complementarity effect between military spending and corruption is omitted, as in most studies, the impact of military burden on economic performance is underestimated.

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File URL: http://carecon.org.uk/DPs/1103.pdf
File Function: First version, 2011
Download Restriction: no

Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working Papers with number 1103.

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Length: 24 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:uwe:wpaper:1103
Contact details of provider: Postal: 0117 328 3610
Phone: 0117 328 3610
Web page: http://www1.uwe.ac.uk/bl/research/bristoleconomics.aspx

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