High levels of corruption limit investment and growth and lead to Essay - 1

High levels of corruption limit investment and growth and lead to ineffective government. Discuss with reference to concrete examples - Essay standardiciency is being advocated at all levels f .the world outlook has now transitioned from the sustenance f regulated economies to a liberalization f the world economy. It is in this regard that corruption, a relatively new phenomenon is gaining widespread importance in economic circles. What distinguishes corruption from other indictors is essentially the fact that it is non-quantifiable concept.While measures f growth, program line and access to health facilities are easily available, it is extremely difficult to actually assess the level f underhand dealings in an economy. The lack f concrete information makes any corruption measure largely susceptible to biases and subjectivity. To augment is, depending on the definition f corruption for any single economy. Our invent is aimed at waiving the problems encountered in comprehending the exact nature f the relationship between corruption and economic development. To this effect .we have move to do the following* place a theoretical framework in which to view the effect f corruption on growth we have presented annotated summaries for acceptable theories about corruption. At the same(p) time we have ventured to formulate our own hypotheses about the corruption-development relationship.* Test the theoretical base for empirical validity By conducting a cross-sectional study we attempted to discern the practical significance f corruption. For the purpose f the best we formulated our own model f economic development, using both guess and relevant econometric tools. In the wake f this we have rejected and accepted several theories.Our study has also acquainted us with economic relationships which ramble from our main analysis but which are nevertheless educating. We were able to discern a highly interesting relationship whereby corruption was found to be more(prenomi nal) relevant to economic development than to economic growth, leading to the conclusion that perhaps the level f rent -seeking in