Corrupt Bureaucracy and Growth
Authors registered in the RePEc Author Service: Ratbek Dzhumashev ()
MPRA Paper from University Library of Munich, Germany
In this paper, we analyze implications of corruption on growth. We extend existing growth models by incorporating ubiquitous corruption as a by-product of the public sector. Corruption affects both taxation and public good provision, and therefore causes income redistribution and inefficiencies in the public sector. These effects of corruption lead to lower growth through distortions of investment incentives and resources allocation.
Keywords: Corruption; growth; public goods; tax evasion (search for similar items in EconPapers)
JEL-codes: D92 E60 H40 O17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-pbe, nep-pol and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:2082
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