Abstract
Remittances are an important source of income for the very countries afflicted by high levels of corruption. However, corruption undermines the development potential of remittances. With this in mind, we propose policy reforms that harness the potential of remittances while mitigating corruption. Unlike previous studies, we point to two channels: (1) the corrupt government’s trade-off between its financial interests (corruption), the provision of a public good, and the gains from a higher inflow of remittances; and (2) the household’s consumption of the public good relative to that of the privately obtained substitute of the public good.
Description
This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.© 2022 The Authors. Bulletin of Economic Research published by Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd.
Publisher
Wiley
Date of publication
2022
Language
english
Persistent identifier
http://hdl.handle.net/10950/4956
Document Type
Article
Recommended Citation
Gautier, Luis and Vatsa, Puneet, "Corruption, remittances, and public goods: A unified framework" (2022). Economics Faculty Publications and Presentations. Paper 10.
http://hdl.handle.net/10950/4956