Corruption, Public Expenditure and Human Capital Accumulation

Spyridon Boikos

Review of Economic Analysis, 2016, vol. 8, issue 1, 17-45

Abstract: "This paper investigates the possible non-linear effect of corruption on human capital accumulation through two channels. The first channel is through the effect of corruption on the public expenditure on education and the second channel is through the effect of corruption on the physical capital investment. Initially, we construct an endogenous two-sector growth model with human capital accumulation and we try to explore the impact of corruption on the allocation of public expenditure and therefore on the distribution of human capital across sectors. Then by using a semi-parametric method, we confirm the presence of non-linearities between human capital and corruption."

Keywords: "Corruption; Public Expenditure; Economic Growth; Human Capital Investment; Semiparametric Estimation" (search for similar items in EconPapers)
JEL-codes: H52 J24 O41 (search for similar items in EconPapers)
Date: 2016
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Related works:
Working Paper: Corruption, Public Expenditure, and Human Capital Accumulation (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ren:journl:v:8:y:2016:i:1:p:17-45

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