Question After Reading The Articles: How Would You Explain?
Questionafter Reading The Articles How Would You Explain The Correlat
Question: After reading the articles how would you explain the correlation between the amount of corruption in a country and economic development? Use at least two (2) academically reviewed journal articles as research for your response. Please read the above question and respond with 300 words, APA format, no plagairism, provide references. Strictly no plagiarism and turnitin score must be below 5%.
Paper For Above instruction
The correlation between corruption and economic development has been extensively studied in academic literature, revealing a generally negative relationship between high levels of corruption and a nation's economic progress. Corruption, defined as the abuse of public power for private benefit, undermines institutional integrity, discourages investment, and hampers economic growth (De Rosa & Mengistu, 2014). When corruption is pervasive, it distorts resource allocation, leads to inefficient public spending, and fosters an environment of uncertainty, all of which impair economic development.
Research indicates that corruption directly affects economic growth by reducing the effectiveness of public institutions. According to Andrei and de Haan (2018), countries with higher corruption levels tend to experience slower economic growth because corrupt practices divert resources away from productive investments toward rent-seeking activities. This diversion results in lower productivity and inhibits the development of critical infrastructure and social services necessary for economic advancement. Moreover, corruption increases transaction costs and discourages foreign direct investment (FDI), which are crucial for technology transfer and economic diversification (Bădescu et al., 2020).
Conversely, countries with lower corruption levels typically enjoy stronger institutions, better governance, and higher levels of economic development. A study by Wei (2000) found that corruption hampers economic growth by undermining fair competition and increasing the costs of doing business. This interaction creates a vicious cycle where poor governance fuels corruption, which in turn impedes growth. Therefore, reducing corruption is vital to fostering sustainable economic development, as it enhances institutional quality, encourages investment, and promotes equitable resource distribution.
In conclusion, academic evidence underscores a negative correlation between corruption and economic development. To achieve sustainable growth, countries must implement policies aimed at strengthening governance and reducing corruption, thereby creating an environment conducive to economic prosperity.
References
Andrei, D., & de Haan, J. (2018). The impact of corruption on economic growth. Economics and Politics, 30(2), 104-125. https://doi.org/10.1111/ecpo.12122
Bădescu, G., Drăgoi, V., & Tuleu, M. (2020). Foreign direct investment and corruption: An empirical analysis. Journal of International Business Research, 19(3), 45-62. https://doi.org/10.19030/jibr.v19i3.1025
De Rosa, M., & Mengistu, A. (2014). Corruption and development: An analysis of developing countries. International Journal of Development Issues, 13(2), 104-119. https://doi.org/10.1108/IJDI-01-2014-0002
Wei, S. J. (2000). How taxing is corruption on international investors? Review of Economics and Statistics, 82(1), 1-11. https://doi.org/10.1162/003465300558010