@techreport{5688c03e15ed40dd812c96f290901a7c,
title = "Rent seeking opportunities and economic growth in transitional economies",
abstract = "This study empirically explores the growth effects of rent seeking activity (RSA) for a group of 52 developing/transitional countries, using a dynamic panel data approach. The modelling framework is a Mankiw-Romer-Weil (MRW) conditional convergence model augmented by measures of the opportunities for RSA, namely indices for the extent of democracy and corruption control. We find that health is more relevant than educational participation as a measure of human capital development in the MRW model. The overall empirical analysis shows that RSA retards economic growth, in that democratic institutions, which are inimical to RSA, are growth enhancing. We also find that reduction in the extent of corruption is only growth-enhancing if supported by well-developed democratic institutions.",
keywords = "Dynamic panel models, Economic growth, Economics and econometrics, JEL Codes: E13, O43, O47, Rent seeking, Transition economies",
author = "Nasir Iqbal and Vince Daly",
note = "Impact: The Pakistan Instuitute of Development Economics is a well-established and highly reputable organisation devoted to theoretical and empirical research in Development Economics that can provide a firm basis for economic policy making.",
year = "2013",
month = feb,
language = "English",
series = "PIDE Working Papers",
publisher = "Pakistan Institute of Development Economics",
number = "2013:87",
address = "Pakistan",
type = "WorkingPaper",
institution = "Pakistan Institute of Development Economics",
}