Theoretical and Applied Economics
No. 2 / 2018 (615), Summer
Corruption, governments’ debts, trade, and global growth
Ritsumeikan Asia Pacific University, Japan
Abstract. The purpose of the study is to examine interdependence between national growth, global growth, income and wealth distributions between workers and officials and between countries, government’s debts, and corruption. We are especially concerned with how corruption in any economy can affect global trade pattern and global economic growth. The model is constructed within a dynamic general equilibrium framework on the basis of the Solow growth model, the Oniki- Uzawa-two-country global growth model, Diamond’s growth model with government’s debt, and Zhang’s model with corruption. The dynamic interdependence between endogenous labor supply, government’s debt, and corruption for a-country world economy is described by nonlinear differential equations. We simulate the model and conduct comparative dynamic analyses conducted for a 3-country global economy. We get many insights from comparative dynamic analyses. For instance, if they become more corrupt, the officials in the world become richer, consume more, and get more corrupt incomes. All the workers have less wealth, consume less, and work almost the same hours. The output levels are slightly affected and each country employs more capital as global wealth is increased. Each government has slightly less debt and spends more.
Contents
Studying banking performance from an accounting perspective: Evidence from Europe
Corruption, governments’ debts, trade, and global growth
Innovation – trends and patterns at Romanian firms
How to build an economy free of recession and stagnation: results from a multi-commodity macro model
Analyzing the employment rate of the population, unemployment and vacancies in the economy
An implicit model of adjustment costs in differential input demand systems
Diversity and proportionality, challenges or opportunities for the European banking sector?
A competitive economy as the path to future prosperity: Comparative analysis of selected European countries
Studying the political economy of reforms: The Greek case, 2010-2017
Analysis of the evolution of the number of pensioners and pensions in Romania
Inflation unemployment dynamics in Hungary – A structured cointegration and vector error correction model approach
Are defence expenditures the reasons of foreign debts in Turkey?
Exports, imports and economic growth in India: Evidence from cointegration and causality analysis
The role of economic growth and energy consumption on CO2 emissions in E7 countries
Which comes first – savings or growth? Time series evidence from ECOWAS countries