Government spending, corruption and economic growth
| dc.creator | d'Agostino, Giorgio | |
| dc.creator | Dunne, John Paul | |
| dc.creator | Pieroni, Luca | |
| dc.date | 2013-02-28T13:39:52Z | |
| dc.date | 2013-02-28T13:39:52Z | |
| dc.date | 2012 | |
| dc.description | This paper considers the effects of corruption and government spending on economic growth. It starts from an endogenous growth model and extends it to account for the detrimental effects of corruption on the potentially productive components of government spending, namely military and investment spending. The resulting model is estimated on a sample of African countries and the results show, first, that the growth rate is strongly influenced by the interaction between corruption and military burden, with the interaction between corruption and government investment expenditure having a weaker effect. Second, allowing for the cyclical economic fluctuations in specific countries leaves the estimated elasticities close to those of the full sample. Third, there are significant conditioning variables that need to be taken into account, namely the form of government, political instability and natural resource endowment. These illustrate the cross country heterogeneity when accounting for quantitative direct and indirect effects of key variables on economic growth. Overall, these findings suggest important policy implications. Classification-JEL: O57, H5, D73 | |
| dc.description | corruption; military spending; development economics; panel data; Africa | |
| dc.identifier | http://hdl.handle.net/11090/167 | |
| dc.identifier.ris | TY - DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - T1 - Government spending, corruption and economic growth TI - Government spending, corruption and economic growth UR - ER - | en_ZA |
| dc.language.iso | eng | |
| dc.publisher | Southern Africa Labour and Development Research Unit | |
| dc.publisher.department | SALDRU | en_ZA |
| dc.publisher.faculty | Faculty of Commerce | en_ZA |
| dc.publisher.institution | University of Cape Town | |
| dc.title | Government spending, corruption and economic growth | |
| dc.type | Other / General |