The Incidence and Persistence of Corruption in Economic Development

Keith Blackburn, Niloy Bose and M. Emranul Haque ()

Centre for Growth and Business Cycle Research Discussion Paper Series from Economics, The University of Manchester

Abstract: Economic development and bureaucratic corruption are determined jointly in a dynamic general equilibrium model of growth, bribery and tax evasion. Corruption arises from the incentives of public and private agents to conspire in the concealment of information from the government. These incentives depend on aggregate economic activity which, in turn, depends on the incidence of corruption. The model produces multiple development regimes, transition between which may or may not occur. In accordance with recent empirical evidence, the relationship between corruption and development is predicted to be negative.

Keywords: Economic Development; Corruption (search for similar items in EconPapers)
Pages: 26 pages
Date: 2003
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Related works:
Journal Article: The incidence and persistence of corruption in economic development (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:man:cgbcrp:34

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