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Corruption and economic growth in Lebanon

Author

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  • Farida, Moe
  • Ahmadi-Esfahani, Fredoun Z.

Abstract

This paper seeks to examine the impact of corruption on economic growth in Lebanon. Using a neoclassical model, we hypothesise that corruption reduces the country's standard of living as measured by real per capita GDP. We show that corruption deters growth indirectly through reducing the factor input productivity in a Cobb-Douglas production function. We provide empirical evidence suggesting that corruption increases inefficiencies in government expenditure and reduces investment and human capital productivity, leading to a negative impact on output. The implications of the analysis are explored.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aare08:6043
    DOI: 10.22004/ag.econ.6043
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    Cited by:

    1. Muhammad Ali & Abiodun Egbetokun & Manzoor Hussain Memon, 2018. "Human Capital, Social Capabilities and Economic Growth," Economies, MDPI, vol. 6(1), pages 1-18, January.
    2. Aribah Aslam, 2020. "The hotly debate of human capital and economic growth: why institutions may matter?," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(4), pages 1351-1362, August.
    3. Tania Haddad & Tracy Sakr, 2023. "Interorganizational Relation in Disaster Response in Developing Context: Assessing Response to Beirut Explosion," Public Organization Review, Springer, vol. 23(3), pages 1167-1193, September.

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