THE EFFECTS OF RENT SEEKING ACTIVITIES ON ECONOMIC GROWTH IN MIDDLE-INCOME COUNTRIES

Authors

Zi Wen Vivien Wong, Universiti Tunku Abdul Rahman, MalaysiaFollow
Fanyu Chen, Universiti Tunku Abdul Rahman, MalaysiaFollow
Siong Hook Law, Universiti Putra Malaysia, MalaysiaFollow
Normaz Wana Ismail, Universiti Putra Malaysia, MalaysiaFollow

Document Type

Article

Abstract

This study investigates the effects of rent seeking activities on economic growth in 53 middle-income countries. Our data span the period 2011 to 2020. We use the generalized method of moments estimator to examine the effects of rent-seeking activities on economic growth. Our study also includes several control variables, namely democratic accountability, public debt, human capital, foreign direct investment, capital stock, population, research and development expenditure and trade openness. The empirical results suggest that rent-seeking activities impede economic growth in middle-income countries.

Recommended Citation

Wong, Zi Wen Vivien; Chen, Fanyu; Law, Siong Hook; and Ismail, Normaz Wana (2022) "THE EFFECTS OF RENT SEEKING ACTIVITIES ON ECONOMIC GROWTH IN MIDDLE-INCOME COUNTRIES," Bulletin of Monetary Economics and Banking: Vol. 25: No. 2, Article 5.
DOI: https://doi.org/10.21098/bemp.v25i2.1863
Available at: https://bulletin.bmeb-bi.org/bmeb/vol25/iss2/5

First Page

215

Last Page

234

Creative Commons License

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

Country

Malaysia

Affiliation

Universiti Tunku Abdul Rahman