The relationship between corruption and public investment at the municipalities’ level in Indonesia

Teguh Dartanto

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: Corruption; Public Investment; Game Theory; Regional Development (search for similar items in EconPapers)
JEL-codes: C72 H0 R11 (search for similar items in EconPapers)
Date: 2010-03, Revised 2010-04
New Economics Papers: this item is included in nep-pbe, nep-pol, nep-sea and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:23736

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