Beruflich Dokumente
Kultur Dokumente
CORRUPTION,PUBLIC
INVESTMENT AND GROWTH
BY:-
Nidhi Verma
Nikita Johari
SUMMARY
Point out the effect of corruption on the
economy and the growth of the country.
Then discuss reasons why we assume the
public investment is particularly sensitive to
the existence of corruption.
Hypotheses testing
Draw conclusion
EXISTENCE OF CORRUPTION
Capital spending is more support by politicians
rather then current spending
Corrupt high level official steer the approval of
investment project towards particular domestic
or foreign enterprises in exchange for bribes
Political personalities steer public investment
towards their own land
Project are chosen exclusively for their bribe-
generating capacity and not for their productivity
EFFECT OF CORRUPTION
Public investment
Government revenues
O &m expenditure
Quality of public investment
As dependent variable
All these dependent variables have been
measured in terms of their relationship with
corruption.
HYPOTHESIS TESTED IN
THE PAPER
1. High corruption is associated with high
public investment.
2. High corruption is associated with low
government revenue.
3. High corruption is associated with low O&M
expenditure.
4. High corruption is associated with poor
quality of infrastructure.
Single, Multiple Or Stepwise Regression?