Corruption and economic growth in Lebanon

Moe Farida and Fredoun Z. Ahmadi-Esfahani

No 6043, 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia from Australian Agricultural and Resource Economics Society

Abstract: This paper seeks to examine the impact of corruption on economic growth in Lebanon. Using a neoclassical model, we hypothesise that corruption reduces the country's standard of living as measured by real per capita GDP. We show that corruption deters growth indirectly through reducing the factor input productivity in a Cobb-Douglas production function. We provide empirical evidence suggesting that corruption increases inefficiencies in government expenditure and reduces investment and human capital productivity, leading to a negative impact on output. The implications of the analysis are explored.

Keywords: Institutional and Behavioral Economics; Labor and Human Capital; Public Economics (search for similar items in EconPapers)
Pages: 27
Date: 2008
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare08:6043

DOI: 10.22004/ag.econ.6043

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