EFFECTS OF RENT-SEEKING ON ECONOMIC GROWTH IN LOW-INCOME ECONOMIES

Authors

Zi Wen Vivien Wong, Universiti Tunku Abdul Rahman, MalaysiaFollow
Fanyu Chen, Universiti Tunku Abdul Rahman, MalaysiaFollow
Thian Hee Yiew, Universiti Tunku Abdul Rahman, MalaysiaFollow

Document Type

Article

Abstract

Sluggish growth in low-income countries, despite the high performance in other economic indicators, motivates the literature to switch attention to institutions. Despite its crucial economic implications, there is limited attention on rent-seeking as a driver of economic growth in low-income countries. This paper investigates the effect of rent-seeking on growth in low-income countries from 2004 to 2017using the system generalized method of moments estimator. The empirical results reveal that rent-seeking negatively affects growth, implying that it obstructs the pace of economic development in low-income countries. Hence, it is necessary for policymakers in these countries to adopt anti-rent-seeking policies to promote a rapid and sustainable growth.

Recommended Citation

Wong, Zi Wen Vivien; Chen, Fanyu; and Yiew, Thian Hee (2021) "EFFECTS OF RENT-SEEKING ON ECONOMIC GROWTH IN LOW-INCOME ECONOMIES," Bulletin of Monetary Economics and Banking: Vol. 24: No. 2, Article 5.
DOI: https://doi.org/10.21098/bemp.v24i2.1386
Available at: https://bulletin.bmeb-bi.org/bmeb/vol24/iss2/5

First Page

205

Last Page

220

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Malaysia

Affiliation

Universiti Tunku Abdul Rahman