Countries with a high level of bureaucratic inefficiency tend to have low rates of real GDP growth because

Question

Quizplus · Accepted Answer

Bureaucratic inefficiency leads to complications and delays in processes such as obtaining permits, licenses, and approvals, which can impede the flow of capital goods to their most efficient use, thereby limiting productivity and slowing economic growth. Poor accounting practices or management skill development in companies may also contribute to low GDP growth, but these factors are not directly related to bureaucratic inefficiency. The statement "they facilitate capital goods development" is incorrect as bureaucratic inefficiency hinders rather than facilitates capital goods development.

Countries with a High Level of Bureaucratic Inefficiency Tend to Have