• Zi Wen Vivien Wong
  • Fanyu Chen Universiti Tunku Abdul Rahman, Malaysia
  • Thian Hee Yiew
Keywords: Rent-seeking, Economic growth, System generalized method of moments estimator, Low-income countries


Sluggish growth in low-income countries, despite the high performance in other economic indicators, motivates the literature to switch attention to institutions. Despite its crucial economic implications, there is limited attention on rent-seeking as a driver of economic growth in low-income countries. This paper investigates the effect of rent-seeking on growth in low-income countries from 2004 to 2017using the system generalized method of moments estimator. The empirical results reveal that rent-seeking negatively affects growth, implying that it obstructs the pace of economic development in low-income countries. Hence, it is necessary for policymakers in these countries to adopt anti-rent-seeking policies to promote a rapid and sustainable growth.


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How to Cite
Wong, Z. W. V., Chen, F., & Yiew, T. H. (2021). EFFECTS OF RENT-SEEKING ON ECONOMIC GROWTH IN LOW-INCOME ECONOMIES. Buletin Ekonomi Moneter Dan Perbankan, 24(2), 205 - 220. https://doi.org/10.21098/bemp.v24i2.1386