| dc.description.abstract | Corruption is one of big issues being faced by many countries in the world. The objectives of this research are to analyze: the effect of corruption to growth economy factors, and the relationship between corruption and transparency in economic institutions using Ramsey and Cobb Douglas models. There are three main resources of corruption, namely tax, output and consumption. The tax sector is the most corrupted resources. Corruption causes high cost economy that increases discount rates and depreciation. Consequently levels of investments, accumulated public capital and output in the long run will be declined. As a convergent system, it has a negative relationship between the level of corruption as endogenous variable and the growth rate of output. The prediction of this model matches with the current empirical evidence on the relationship between the growth rate of output, corruption, public investment and fiscal transparency | en |
