| Author | Nguyen The Hoang |
| Call Number | AIT RSPR no.SM-07-02 |
| Subject(s) | Expenditures, Public
|
| Note | A research study submitted in partial fulfillment of the requirements for
the degree of Master of Business Administration
in International Public Management |
| Publisher | Asian Institute of Technology |
| Abstract | This paper investigates the relationship between the politically-connected firms and the
allocation of government expenditure by applying econometric methodology. We have
conducted descriptive analyses and robust OLS regressions on empirical data sets of
politically connected firms (as percentage of total number of firms) and central
government expenses (as share of total outlays).
In the first place, we found that on average around 30% of a nation's GDP is allocated to
government spending in order to nurture socio-economic development. We also drew the
patterns of public spending allocation amongst regions.
Secondly, our regression work brings empirical evidence that politically-connected firms
positively correlate to the part of public spending allocated to Defense, Public order and
safety, Housing, Education and Economics affairs (including economic sectors such as
Agriculture, Fuel and Transport); and negatively correlate to the social spending (on
Social protection, Health and Environment).
Thirdly, we were able to show that political connection brings great advantages to firms.
Thanks to it, politically-connected firms have better chance of winning contracts in
corruption-intensive sectors like Defence, Public order and Fuel. Moreover its longterm
advantage allows politically-connected firms ' influence reach more sectors than
corruption, including highly competitive, long-payback or rent-fragmented ones such as
Housing, Transport and Agriculture sectors).
Last but not least, our empirical findings contribute to the Literature to produce a
complete picture of the impacts of Corruption on government expenditure. |
| Year | 2007 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Donyaprueth Krairit |
| Examination Committee(s) | Zimmermann, Willi ;Tang, John C. S. |
| Scholarship Donor(s) | France-AIT Fellowship ;French Government's Eiffel scholarship |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007 |