Rent seeking opportunities and economic growth in transitional economies

Iqbal, Nasir and Daly, Vince (2013) Rent seeking opportunities and economic growth in transitional economies. (Working Paper) Islamabad, Pakistan : Pakistan Institute of Development Economics. 22 p. (PIDE Working Papers, no. 2013:87)

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Abstract

This study empirically explores the growth effects of rent seeking activity (RSA) for a group of 52 developing/transitional countries, using a dynamic panel data approach. The modelling framework is a Mankiw-Romer-Weil (MRW) conditional convergence model augmented by measures of the opportunities for RSA, namely indices for the extent of democracy and corruption control. We find that health is more relevant than educational participation as a measure of human capital development in the MRW model. The overall empirical analysis shows that RSA retards economic growth, in that democratic institutions, which are inimical to RSA, are growth enhancing. We also find that reduction in the extent of corruption is only growth-enhancing if supported by well-developed democratic institutions.

Item Type: Monograph (Working Paper)
Uncontrolled Keywords: Rent seeking, Economic growth, Transition economies, Dynamic panel models, JEL Codes: E13, O43, O47
Research Area: Economics and econometrics
Politics and international studies
Faculty, School or Research Centre: Faculty of Arts and Social Sciences (until 2017) > School of Economics, History and Politics (from November 2012)
Depositing User: Vince Daly
Date Deposited: 01 Mar 2013 13:40
Last Modified: 21 Mar 2013 09:27
URI: http://eprints.kingston.ac.uk/id/eprint/24724

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