Motivating factors for rent seeking in the public sector and its effects on the economic growth of the middle income and low income countries
Date of Publication
2005
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Applied Economics
Subject Categories
Economics
College
Ramon V. Del Rosario College of Business
Department/Unit
Economics
Defense Panel Chair
Roberto Raymundo
Defense Panel Member
Neriza Delfino
Paulynne Castillo
Abstract/Summary
According to economic growth theory, the economy prospers when there is good social infrastructure which encourages production and investment. On the other hand, a social infrastructure which encourages diversion has a detrimental effect to the economy. This paper aims to identify the fundamental economic and non-economic factors which cause government officials to engage in rent seeking activities and to determine the impact of rent seeking in middle income and low income countries through the inflow of foreign direct investments. Using the linear regression model and ordinary least squares estimation, the proponents of the study have presented two models: the causes of corruption model and the investment model. In the causes of corruption model, education has the most significant bearing on the level of corruption in the middle and low income countries, meaning more education can reduce corruption. In addition, the only economic factor which is significant at the 10% level was foreign aid while government expenditure as a ratio of GDP does not prove to be significant thus, the proponents are able to justify the harmful effects of corruption on foreign direct investments of the middle income and low income countries. Corruption significantly reduces the incentives of an economy for investment.
Abstract Format
html
Language
English
Format
Accession Number
TU14285
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
111, [36] leaves ; 28 cm.
Keywords
Rent (Economic theory); Economic development; Corruption; Investments, Foreign--Corrupt practices; Public institutions--Corrupt practices; Political corruption
Recommended Citation
Galaraga, C. M., Rodriquez, M. G., Song, S., & Wong, C. H. (2005). Motivating factors for rent seeking in the public sector and its effects on the economic growth of the middle income and low income countries. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/14347