Effects of Graft on Economic Development : An Examination of Propositions from the Literature.

by Rolla Edward Park

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An examination of the effects of graft, i.e., the misuse of public office for private ends, on economic development. Graft does not necessarily retard development. Moreover, it is not a homogeneous phenomenon: there are numerous types, both collusive and noncollusive, with direct, indirect, and monetary effects. Also, the impact of any particular act depends on the institutional, economic, and social environment. A simple disaggregative method of analyzing graft-effect hypotheses is proposed, and then applied to several hypotheses. This approach emphasizes the inhomogeneity of graft by considering separately the effects of each type. Indirect effects, though perhaps important, are not considered. Nor is empirical evidence presented, though potential empirical studies and methods of measuring graft are discussed. 37 pp. Refs. (LC)

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