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

  • Zi Wen Vivien Wong Universiti Tunku Abdul Rahman
  • Fanyu Chen Universiti Tunku Abdul Rahman, Malaysia
  • Siong Hook Law Universiti Putra Malaysia
  • Normaz Wana Ismail Universiti Putra Malaysia
Keywords: Rent-seeking, Economic growth, System generalized method of moment estimator, Middle-income trap, Middle-income countries

Abstract

This study investigates the effects of rent seeking activities on economic growth in 53 middle-income countries. Our data spans 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.

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Published
2022-08-31
How to Cite
Wong, Z. W. V., Chen, F., Law, S., & Ismail, N. (2022). THE EFFECTS OF RENT SEEKING ACTIVITIES ON ECONOMIC GROWTH IN MIDDLE-INCOME COUNTRIES. Buletin Ekonomi Moneter Dan Perbankan, 25(2), 215-236. https://doi.org/10.21098/bemp.v25i2.1863
Section
Articles