Vivien Wong Zi Wen0000-0002-1102-2534Fanyu Chen0000-0002-1848-9989Thian Hee Yiew2024-10-212024-10-212021-06-30https://doi.org/10.21098/bemp.v24i2.1386https://dspace-cris.utar.edu.my/handle/123456789/3731Sluggish 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.journal-article