When the cure leaks: corruption, health spending, and health outcomes in Malawi

These results concur with our location of corruption within the institutional hypothesis-which posit that the quality and structure of institutions determine economic performance, and the Solow swan growth model in which we see corruption as an externality and source of inefficiencies, reducing the productivity of public investment in health (K) and the rate of technological progress (A(t)). Importantly, we made various policy suggestions, such as tying health expenditure to measurable outcomes to ensure efficiency and reduce leakages of public funds.