Can corruption favour growth via the composition of government spending?

Sugata Ghosh () and Andros Gregoriou ()
Additional contact information
Andros Gregoriou: University of East Anglia

Economics Bulletin, 2010, vol. 30, issue 3, 2270-2278

Abstract: In an endogenous growth model with two public goods, we analytically derive the optimal composition of government spending in the presence of corruption. Although corruption results in a loss of productivity per se, an increase in corruption in the category of public spending that is harmed relatively more by corruption could have a favourable effect on growth, as it would encourage a benevolent government to divert spending towards the public good that is more productive, net of corruption.

Keywords: Corruption; optimal composition of government spending; endogenous growth. (search for similar items in EconPapers)
JEL-codes: E6 H5 (search for similar items in EconPapers)
Date: 2010-08-26
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I3-P208.pdf (application/pdf)

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:ebl:ecbull:eb-10-00066

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().