Some economists have argued that corruption reduces the returns on business investment and leads to low economic growth.

Question

Quizplus · Accepted Answer

Corruption can lead to inefficiencies, higher costs, and reduced productivity, which in turn can discourage business investment and limit economic growth. It also creates an uneven playing field that favors those who are willing to engage in corrupt behavior over those who are not, further distorting economic outcomes. As a result, many economists believe that reducing corruption is critical to promoting sustainable economic development.

Some Economists Have Argued That Corruption Reduces the Returns on Business