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Growth and Rent Dissipation: The Case of Kenya

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  • Bigsten, Arne
  • Moene, Karl Ove

Abstract

Poor growth performance in Kenya is rooted in the ruling elite's coalition-building to stay in power. To obtain loyal followers the public sector is over-manned. Dishonesty and rule-bending are allowed to develop within an administrative culture where politicians and top bureaucrats acquire private businesses and landholdings (straddling). Thus politics become coupled with corruption and particularistic business interests. We outline a stylized endogenous growth model to structure the discussion of why public sector surplus labor, corruption and straddling may be so harmful to economic growth in Kenya. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Bigsten, Arne & Moene, Karl Ove, 1996. "Growth and Rent Dissipation: The Case of Kenya," Journal of African Economies, Centre for the Study of African Economies, vol. 5(2), pages 177-198, June.
    • Handle: RePEc:oup:jafrec:v:5:y:1996:i:2:p:177-98
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    Citations

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    Cited by:

    1. Mehlum, Halvor & Moene, Karl O. & Torvik, Ragnar, 2003. "Parasites," Memorandum 16/2003, Oslo University, Department of Economics.
    2. Congdon Fors, Heather & Olsson, Ola, 2007. "Endogenous institutional change after independence," European Economic Review, Elsevier, vol. 51(8), pages 1896-1921, November.
    3. Tansel, Aysit & Öztürk, Ceyhan & Erdil, Erkan, 2021. "The Impact of Body Mass Index on Growth, Schooling, Productivity, and Savings: A Cross-Country Study," GLO Discussion Paper Series 929, Global Labor Organization (GLO).
    4. Panicos Demetriades & David Fielding, 2012. "Information, Institutions, And Banking Sector Development In West Africa," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 739-753, July.
    5. Bigsten, Arne, 1998. "Can Aid Generate Growth in Africa?," Working Papers in Economics 3, University of Gothenburg, Department of Economics.
    6. Arne Bigsten, 2001. "Relevance of the Nordic Model for African Development," WIDER Working Paper Series DP2001-131, World Institute for Development Economic Research (UNU-WIDER).
    7. Arne Bigsten & Dick Durevall, 2003. "Globalisation and Policy Effects in Africa," The World Economy, Wiley Blackwell, vol. 26(8), pages 1119-1136, August.
    8. M Ncube, 2001. "The Crowding Out Effect In A Developing Country'S Labour Market," South African Journal of Economics, Economic Society of South Africa, vol. 69(3), pages 474-500, September.
    9. Olsson, Ola, 2007. "Conflict diamonds," Journal of Development Economics, Elsevier, vol. 82(2), pages 267-286, March.
    10. Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2003. "Predator or prey?: Parasitic enterprises in economic development," European Economic Review, Elsevier, vol. 47(2), pages 275-294, April.
    11. Bigsten, Arne & Durevall, Dick, 2002. "Is Globalisation Good for Africa?," Working Papers in Economics 67, University of Gothenburg, Department of Economics.
    12. Biru Paksha Paul, 2010. "Does corruption foster growth in Bangladesh?," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 9(3), pages 246-262, September.
    13. Kalle Moene & Tina Søreide, 2015. "Good Governance Facades," CMI Working Papers 2, CMI (Chr. Michelsen Institute), Bergen, Norway.
    14. Arne Bigsten & Jörgen Levin, 2001. "Growth, Income Distribution, and Poverty," WIDER Working Paper Series DP2001-129, World Institute for Development Economic Research (UNU-WIDER).
    15. Susan-Rose Ackerman, 1997. "Corruption, Infefficiency and Economic Growth," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 24, pages 3-20.
    16. Bedasso, Biniam, 2012. "Lords of Uhuru: the political economy of elite competition and institutional change in post-independence Kenya," MERIT Working Papers 2012-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Christopher S. Adam & Stephen O'Connell, 1997. "Aid, taxation and development: analytical perspectives on aid effectiveness in sub-Saharan Africa," CSAE Working Paper Series 1997-05, Centre for the Study of African Economies, University of Oxford.
    18. Collen Zalengera & Long Seng To & Richard Sieff & Alison Mohr & Aran Eales & Jon Cloke & Hannah Buckland & Ed Brown & Richard Blanchard & Simon Batchelor, 2020. "Decentralization: the key to accelerating access to distributed energy services in sub-Saharan Africa?," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 10(3), pages 270-289, September.
    19. Roumanias, Costas, 2007. "Is collusion of corrupt agents welfare increasing?," Economics Letters, Elsevier, vol. 94(3), pages 421-425, March.
    20. Farida, Moe & Ahmadi-Esfahani, Fredoun Z., 2008. "Corruption and economic growth in Lebanon," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6043, Australian Agricultural and Resource Economics Society.

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