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|dc.contributor.author||Forgues-Puccio, Gonzalo F.||en_US|
|dc.description.abstract||We study the effect of international financial integration on economic development when the quality of governance may be compromised by corruption. Our analysis is based on a dynamic generalequilibrium model of a small economy in which growth is driven bycapital accumulation and public policy is administered by government-appointed bureaucrats. Corruption may arise due to the opportunityfor bureaucrats to embezzle public funds, an opportunity that is mademore attractive by financial liberalisation which, at the same time,raises efficiency in capital production. Our main results may be summarised as follows: (1) corruption is always bad for economic development, but its effect is worse if the economy is open than if it is closed;(2) the incidence of corruption may, itself, be affected by both thedevelopment and openness of the economy; (3) financial liberalisationis good for development when governance is good, but may be bad fordevelopment when governance is bad; and (4) corruption and povertymay co-exist as permanent, rather than just transitory, fixtures of aneconomy.||en_US|
|dc.relation.ispartofseries|||aProceedings of the German Development Economics Conference, Berlin 2006 / Verein für Socialpolitik, Research Committee Development Economics |x8||en_US|
|dc.title||Financial Liberalisation, Bureaucratic Corruption and Economic||en_US|
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