Corruption, Public Investment, and Growth /

Corruption, particularly political or 'grand' corruption, distorts the entire decision-making process connected with public investment projects. The degree of distortions is higher with weaker auditing institutions. The evidence presented shows that higher corruption is associated with (i)...

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Hlavní autor: Tanzi, Vito
Další autoři: Davoodi, Hamid
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 1997.
Edice:IMF Working Papers; Working Paper ; No. 1997/139
On-line přístup:Full text available on IMF
Popis
Shrnutí:Corruption, particularly political or 'grand' corruption, distorts the entire decision-making process connected with public investment projects. The degree of distortions is higher with weaker auditing institutions. The evidence presented shows that higher corruption is associated with (i) higher public investment; (ii) lower government revenues; (iii) lower expenditures on operations and maintenance; and (iv) lower quality of public infrastructure. The evidence also shows that corruption increases public investment while reducing its productivity. These are five channels through which corruption lowers growth. An implication is that economists should be more restrained in their praise of high public sector investment, especially in countries with high corruption.
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Fyzický popis:1 online resource (23 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students