Blackburn, Keith; Forgues-Puccio, Gonzalo F. - Centre for Dynamic Macroeconomic Analysis, University … - 2011
compromised by corruption. The analysis is based on a dynamic general equilibrium model in which growth is driven by capital … accumulation and public policy is administered by government-appointed bureaucrats. Corruption may arise due to the opportunity for … may be summarised as follows: (1) corruption impedes economic development and compromises the effectiveness of aid …