cover image: The impact of corruption on growth and inequality

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The impact of corruption on growth and inequality

16 Jun 2014

The impact of corruption on growth and inequality THE IMPACT OF CORRUPTION ON GROWTH AND INEQUALITY QUERY SUMMARY Could you please provide me with counter- While there is a large consensus in the literature on arguments, evidence as well as possible case the negative impact of corruption on economic studies, which refute the value of corruption as a growth, some researchers continue to argue that. [...] Beyond the have effective government institutions and argument that corruption is necessary to "grease governance systems, corruption can compensate the wheels" of the economy, they see corruption as for red tape and institutional weaknesses and a "positive" (economically, socially) and “grease the wheels” of the economy. [...] 3 THE IMPACT OF CORRUPTION ON GROWTH AND INEQUALITY A 2006 paper finds that corruption in host countries confronted with onerous bureaucracy and high results in less FDI from countries that criminalise levels of corruption to avoid the burden of red tape corruption abroad – which are the largest source of and corruption across a sample of 69 countries. [...] The following section is mainly only lowers the tax to GDP ratio, but also causes drawn from a previous Helpdesk answer on the long-term damage to the economy by increasing the impact of facilitation payments that presents and size of the underground economy, distorting the tax develops further evidence of the damages caused structure and corroding the tax morality of by petty bribery. [...] Comparing the costs of this environment and the efficiency of the state corruption with the potential redistributive benefits apparatus as it creates incentives for politicians and from the programme, the study finds that corruption public officials to create more regulations, was sufficiently large to outweigh the intended restrictions and administrative procedures in order benefits of the progra.

Authors

Tanja Lemke

Pages
11
Published in
Germany