Abstract
This study examines the impact of bureaucratic corruption on economic growth of a small open economy. The economy is composed of two types of households (the workers and the officials) and two sectors (the industrial sector and public sector). Corruption may occur in different parts of the economy. We built a model for analyzing the role of corruption on economic growth, income and wealth distribution between the officials and workers. The model takes account of corruption in the capital market, the labor market, and production sector. It describes dynamic interactions of growth, corruption with endogenous tax rate and different exogenous corruption rates. We simulate motion of the dynamic system and demonstrate how an increase of corruption in the production sector, in the labor market, and other parameters affect the transitory process and long-run state of economic growth.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: İktisat Politikası Araştırmaları Dergisi - Journal of Economic Policy Researches
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
