Corruption, mortality rates, and development:Policies for escaping from the poverty trap

Kiyoka Akimoto ()
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Kiyoka Akimoto: Graduate School of Economics, Kobe University

No 18-10-Rev., Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: We construct a three-period overlapping generations model in which corrup- tion, mortality and fertility rates, and economic development are determined endogenously. We consider a less developed economy suffering from a high degree of corruption and high mortality and fertility rates in a poverty trap. We focus on two policies: raising public sector wages as a means of reducing corruption and increasing public health spending as a means of improving the mortality rate. Our theoretical analysis shows that implementing both policies simultaneously is essential for less developed economies to escape from the poverty trap and achieve economic development.

Keywords: Corruption; Public sector wage; Public health; Economic development (search for similar items in EconPapers)
JEL-codes: D73 I18 J38 O41 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2019-09
New Economics Papers: this item is included in nep-dge and nep-lma
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