The relationship between bureaucratic corruption and financial crisis in an open economy

Chiou-Wen Chen and Meizhi Yang

International Review of Economics & Finance, 2024, vol. 92, issue C, 1583-1594

Abstract: This paper contributes to that debate via a novel examination of the relationships among bureaucratic corruption, growth, and financial crisis in an open economy, using a two-period small open economy model. The outcome shows that the uncertainties created by corruption in such an economy constitute a double-edged sword. That is, when the economy is prosperous, corruption can ‘grease’ the economic system and infuse some motive power into economic activities, and thus help to boost growth. Contrarily, if the economy is experiencing a depreciation, corruption could turn to be an obstacle to growth and even contribute meaningfully to financial crises.

Keywords: Corruption; Depreciation; Growth; Financial crisis; Open economy (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056024000984
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:92:y:2024:i:c:p:1583-1594

DOI: 10.1016/j.iref.2024.02.024

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().