Education, corruption and growth in developing countries

Cuong Le Van () and Mathilde Maurel
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Cuong Le Van: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: Education is key in explaining growth, as emphasized recently by Krueger and Lindahl (2001). But for a given level of education, what can explain the missing growth in developing countries ? Corruption, the poor enforcement of property rights, the government share of property rights, the government share of GDP, the regulations it imposes might influence the Total Factor Productivity (TFP thereafter) of a country's economic system. A number of empirical papers emphasize the consequences bad institutions have on growth, but few are examining the link between education, corruption (more generally bad institutions) and growth. Our model assumes that at low level of GDP per head and high level of corruption education spending has no impact on growth. The slope gets positive only at above critical size of corruption. The implications are tested using the data set of Xavier Sala-i-Martin, Gernot Doppelhofer and Ronald I. Miller (2004), which is extended with the aggregate governance indicators of Kaufman et ali.

Keywords: education; Public spending; endogeneous growth; corruption; éducation; dépenses publiques; croissance endogène (search for similar items in EconPapers)
Date: 2006-12
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Published in 2006

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Related works:
Working Paper: Education, corruption and growth in developing countries (2006)
Working Paper: Education, corruption and growth in developing countries (2006)
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