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The Political Economy of Distribution in Developing Countries: A Rent-Seeking Approach

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  • Pedersen, Karl R

Abstract

Economic development in many Third World countries after independence has been biased in the sense that some, mainly urban, social groups have gained much more than the majority of the population who lives in rural areas or urban shantytowns. That bias is to a large extent caused by government policy and, accordingly, by an uneven distribution of political influence. This paper contains an analytical model reflecting the bias in the distribution of the benefits and costs of public sector activities, where those activities are determined by the distribution of political influence. The main elements of the distribution of political influence are determined in a rent-seeking game between society's different social groups. Copyright 1997 by Kluwer Academic Publishers

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  • Pedersen, Karl R, 1997. "The Political Economy of Distribution in Developing Countries: A Rent-Seeking Approach," Public Choice, Springer, vol. 91(3-4), pages 351-373, June.
    • Handle: RePEc:kap:pubcho:v:91:y:1997:i:3-4:p:351-73
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    Cited by:

    1. Hagen, Rune Jansen, 2004. "Foreign Aid and Domestic Politics Implications for Aid Selectivity," Working Papers 04-12, Cornell University, Center for Analytic Economics.
    2. Samuel Brazys & Krishna Chaitanya Vadlamannati, 2021. "Aid curse with Chinese characteristics? Chinese development flows and economic reforms," Public Choice, Springer, vol. 188(3), pages 407-430, September.
    3. Kahana, Nava & Klunover, Doron, 2014. "Rent seeking and the excess burden of taxation," European Journal of Political Economy, Elsevier, vol. 35(C), pages 158-167.
    4. Elisabeth Paul, 2006. "A Survey of the Theoretical Economic Literature on Foreign Aid," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 20(1), pages 1-17, May.
    5. Kahana, Nava & Klunover, Doron, 2014. "Rent Seeking and the Excess Burden of Taxation," IZA Discussion Papers 8160, Institute of Labor Economics (IZA).
    6. Adams, Richard H. Jr., 2000. "The politics of economic policy reform in developing countries," Policy Research Working Paper Series 2443, The World Bank.

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