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Anagement Boston College qianju bc.edu August 1, 2007 Preliminary, comments welcome Abstract An interesting aspect of corruption is that its damaging effects on economic growth seem to differ significantly across countries. In large and regionally diverse countries such as China and India, rampant corruption has not slowed down growth; in many African and South American countries corrupt officials severely retard growth. We examine corruption associated with the provision of government goods a.
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It finds that corruption discourages investment, limits economic growth, and alters the composition of government spending, often to the detriment of future economic growth. For most of us, rent is what we pay the landlord each month or what a rental agency at an airport charges for letting us use a car for a week.
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Corruption erodes democracy and the rule of law. It hinders the business environment. It precludes essential government services from getting to the people who need it. And it exacerbates transnational challenges like migration, organized crime, extremism, and instability—threatening our national security.
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In a nutshell, corruption increases inequality, decreases popular accountability and political responsiveness, and thus produces rising frustration and hardship among citizens, who are then more likely to accept (or even demand) hard-handed and illiberal tactics.
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Corruption decreases environmental sustainability through deforestation due to illegal logging, timbering and smuggling of forest products (Koyuncu & Yilmaz, 2008). Liu and Dong (2021) report that corruption affects haze pollution via economic development.
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Corruption can lead to an uneven distribution of wealth as small businesses face unfair competition from large companies that have established illegal connections with government officials.
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She identifies four types: “bribes/kickbacks”, which are paid or demanded in re- turn for being allowed to do legitimate business; “elec- tion/campaign corruption”, designed to ensure con- tinuing influence; “protection corruption”, payments in exchange for being allowed to engage in illegiti- mate business; and “ ...
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Tax revenues are often diverted to those in power instead of going into legitimate productive investment, and the same is sometimes true of foreign aid money from abroad. Corruption means that the country's balance of payments account will be in deficit, which will hinder growth.
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Greed of money, desires. Higher levels of market and political monopolization. Low levels of democracy, weak civil participation and low political transparency. Higher levels of bureaucracy and inefficient administrative structures.
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