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Corruption, mortality rates, and development: policies for escaping from the poverty trap

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  • Kiyoka Akimoto

    (Fukuoka University)

Abstract

We construct a three-period overlapping generations model in which corruption, mortality and fertility rates, and economic development are determined endogenously. We consider a less developed economy suffering from a high degree of corruption and high mortality and fertility rates in a poverty trap. We focus on two policies: raising public sector wages as a means of reducing corruption and increasing public health spending as a means of improving the mortality rate. Our aim is to examine what effects each policy has on an economy and how governments can achieve economic development using one, or both, of these policies. Our theoretical analysis shows that implementing both policies simultaneously is essential for less developed economies to escape from the poverty trap and achieve economic development.

Suggested Citation

  • Kiyoka Akimoto, 2021. "Corruption, mortality rates, and development: policies for escaping from the poverty trap," Journal of Economics, Springer, vol. 133(1), pages 1-26, June.
  • Handle: RePEc:kap:jeczfn:v:133:y:2021:i:1:d:10.1007_s00712-020-00719-3
    DOI: 10.1007/s00712-020-00719-3
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    2. Alexandra-Nicoleta Ciucu-Durnoi & Margareta Stela Florescu & Camelia Delcea, 2023. "Envisioning Romania’s Path to Sustainable Development: A Prognostic Approach," Sustainability, MDPI, vol. 15(17), pages 1-18, August.

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    More about this item

    Keywords

    Corruption; Public sector wage; Public health; Development;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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