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

Question

Quizplus · Accepted Answer

Corruption often creates a system that rewards those who use political connections or bribery to gain wealth, rather than those who create value through productive activities. This can discourage entrepreneurship and investment, ultimately leading to lower levels of GDP per capita. Additionally, corrupt countries may lack the institutional frameworks and infrastructure necessary to support economic growth. Higher taxes, as mentioned in choice B, may also contribute to lower levels of GDP per capita, but this is not necessarily a direct result of corruption. Choice A is partially correct, as corruption often leads to weak rule of law, but this alone does not explain lower GDP per capita. Choice D, communism, is not directly related to corruption or GDP per capita, and is therefore incorrect.

Why Do More Corrupt Countries Have Lower Levels of GDP