Open AccessCorruption, Public Expenditure and Human Capital Accumulation
Author(s) -
Spydiron Boikos
Publication year - 2016
Publication title -
review of economic analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.101
H-Index - 1
ISSN - 1973-3909
DOI - 10.15353/rea.v8i1.1430
Subject(s) - human capital , language change , economics , investment (military) , physical capital , distribution (mathematics) , public investment , monetary economics , public economics , market economy , fiscal policy , political science , art , mathematical analysis , literature , mathematics , politics , law
This paper investigates the possible non-linear effect of corruption on human capital accumulation through two channels. The first channel is through the effect of corruption on the public expenditure on education and the second channel is through the effect of corruption on the physical capital investment. Initially, we construct an endogenous two-sector growth model with human capital accumulation and we try to explore the impact of corruption on the allocation of public expenditure and therefore on the distribution of human capital across sectors. Then by using a semi-parametric method, we confirm the presence of non-linearities between human capital and corruption.