Why do more corrupt countries have lower levels of GDP per capita?

Question

Quizplus · Accepted Answer

Government corruption damages entrepreneurs' incentives to produce and create wealth, which leads to lower levels of economic growth and lower GDP per capita. Countries with higher levels of corruption tend to have weaker institutions and less reliable legal systems, making it harder for entrepreneurs to invest and innovate without fear of arbitrary or discriminatory government action. This creates a negative feedback loop, in which corruption undermines economic growth, and poor economic performance facilitates more corruption.

Why Do More Corrupt Countries Have Lower Levels of GDP