Economics at your fingertips  

Inequality and Economic Development:The Role of Corruption

Nobuhiro Mizuno (), Katsuyuki Naito and Ryosuke Okazawa ()
Additional contact information
Ryosuke Okazawa: Osaka School of International Public Policy, Osaka University

No 713, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: This paper presents a model where income inequality negatively affects economic growth through corruption by politicians. While politicians pursue corruption rents that reduce the provision of public goods and sacrifice citizen's welfare, they are also concerned about the political support of citizens to maintain their political power. When inequality among citizens is large, political support is less sensitive to corruption. Therefore, large inequality increases corruption and impedes economic growth. Since corruption is more prevalent in poor countries than rich ones, our argument is consistent with the evidence that shows a negative relationship between inequality and growth in poor countries.

Keywords: Corruption; Income Inequality; Economic Growth (search for similar items in EconPapers)
JEL-codes: D31 K42 O11 (search for similar items in EconPapers)
Pages: 21pages
Date: 2010-08
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (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:

Access Statistics for this paper

More papers in KIER Working Papers from Kyoto University, Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Chiaki Hara ().

Page updated 2021-07-26
Handle: RePEc:kyo:wpaper:713