Corruption and Economic Growth

1378 words 6 pages
Show More
Corruption and Economic Growth
This brief overview analyzes corruption and its relationship to economic growth. The brief continues to consider the idea of economist Amartya Sen that development means more than economic growth. Additionally, provided, a quick risk analysis of two countries where corruption is common everyday practice.
Corruption and Economic Growth
Relationship
What is the relationship between corruption in a country and economic growth? Answer this question. Research indicates corruption weakens an economy. Ho (2001) contends there is a direct relationship between corruption and economic growth (pg. 67). Ho further states “a 1% increase in the corruption level reduces the growth rate by about 0.72% or, …show more content…

Fey and Shekshnia (2008) contend, “Businessmen who claim to have never dealt with corruption working in Russia are either lying or completely misunderstand the environment” (pg. 22).
Czech Republic. Conducting the same search and using the same search engines, replaced Russia with Czech Republic, returned virtually the same results. Cunningham states, “An anti-corruption strategy by the government does not exist” (para. 3).
It is apparent corruption is a large risk in both countries. A risk mitigation plan unique to corruption will greatly increase a successful launch of a business in countries where corruption is high. The investment in either country could be profitable.
Investment
Which investment would you favor and why? Answer and explain.
Favor. Conducting a quick risk analysis of Russia and the Czech Republic, the Czech Republic is the better investment opportunity.
Why. The Czech Republic was favored for returning the best results of a risk analysis – four sources provided the information to form the basis of selecting the Czech Republic. analysis was used: 1) U.S. Department of State: Investment Climate Statements (DoS), 2) Forbes, 3) Doing Business, and 4) Transparency International. Each source provided unique information or a comparison of each country. A brief summary from each source follows.
U.S. Department of State: Investment Climate Statements The DoS (Doing business in Russia: Market overview) contends ,

Related

  • Corruption and Neoliberalism in the Philippines
    2921 words | 12 pages

    Haiyan will likely slow GDP somewhat, economic damage will not be significant, the Eastern Visayas region accounting for only two per cent of the country’s GDP. Economically, at least, the Philippines has had a good year: the first half of 2013 saw GDP growth at 7.3 percent, the highest growth rate in Asia; it saw seen record foreign direct investment….

    Show More
  • Indian Economic History
    2333 words | 10 pages

    policies and strategies of growth” (Mahtaney, 2010, p. 159). Illustrate the truth or falsehood of this statement with reference to either India or China _____________________________________________________________________ “An ounce of practice is worth more than tons of preaching” (Mahatma Gandhi, 1946). Economic thought is an ever-adapting philosophy, which has been ‘preached’ by many differing schools of thought throughout the centuries. In this current global economic context, the majority….

    Show More
  • Inflation and Indonesia
    3618 words | 15 pages

    import commodities are machinery, equipment, chemicals, fuels and foodstuffs. The major import partners are Singapore 16.9%, China 11.8%, Japan 11.7%, Malaysia 6.9%, US 6.1%, South Korea 5.4%, Thailand 4.9% (2008) Export: In the same way due to economic growth improvement in productivity, government policies, export is also increasing rapidly. It was $93.3 billion in 2008 compare to $83 billion in 2007. The major export commodities are oil and gas, electrical appliances, plywood, textiles and rubber….

    Show More
  • Financial Growth Test Questions
    983 words | 4 pages

    When comparing the overall economic freedom of the U.S. to Brazil to Demark I found that the U.S. overall score of freedom was 77.8 vs Brazil’s which was 56.3 vs Denmark’s which was 78.6 • Demark ranked higher than the U.S and Brazil in business, investment, financial freedom, and freedom from corruption • The U.S. and Demark were par when looking at trade, monetary, and labor freedom while Brazil was below….

    Show More
  • What Are the Causes of Poverty in Philippine Economy?
    4877 words | 20 pages

    such as: because of graft and corruption, the way or system practice by our government officials, poor governance of the administration, lack of education, lack of investment, unemployment, underemployment, overpopulation, no cooperation among Filipinos, idleness and lack of discipline. On our face to face survey, we asked the Filipinos such question as ‘Why Philippines is drowning in poverty?’ Based on the result, out of 135 despondences,38% of it believes that corruption is the reason of poverty. 19%….

    Show More
  • Brazil and Mexico Comparative Analysis
    6087 words | 25 pages

    Table of Contents INTRODUCTION 2 BRAZIL 2 Political Analysis 3 Cultural Analysis 4 Economic Analysis 7 MEXICO 9 Political Analysis 10 Cultural Analysis 11 Economic Analysis 14 COMPARATIVE ANALYSIS 17 Recommendation 18 BRAZILIAN STEEL INDUSTRY 18 IMPLEMENTATION 19 REFERENCES 21 APPENDIX 24 INTRODUCTION Brazil and Mexico are two emerging markets that are becoming increasingly prevalent and influential on the international stage. These nations share many similarities. Both are newly….

    Show More
  • Globalization in Argentina
    1343 words | 6 pages

    to be the reason the country was so prosperous. Pope John Paul II stated, “From the ethical point of view, can be positive or negative. In fact, there is an economic globalization which brings some positive consequences, as the phenomenon of efficiency and increased production and, with the development of relations between countries in economic, can strengthen the process of unity among peoples and make a better service to the human family. However, if globalization is ruled merely by the laws of the….

    Show More
  • Philippines' Anti-Poverty Program Through Peoples' Participation
    9122 words | 37 pages

    groups from productive participation in the economic and social life of the nation. Poverty in the Philippines has deep historical roots, its continuation shaped by the interplay of economic, social, political and ecological factors. An effective strategy to alleviate poverty in the country must be able to address the following leading causes of poverty: (i) the slow creation of employment opportunities on account of the anemic record of growth; (ii) the inequality in the distribution of….

    Show More
  • How Does the Political Corruption Affect the Business Environment in Russian Federation?
    3370 words | 14 pages

    How does the political corruption affect the business environment in Russian Federation? ABSTRACT This paper aims to analyze and describe the influence and the scale of the corruption on business environment in Russia, and the consequences for the society. The paper will start by examining “The Collapse of The Soviet Union and The Rise of Russia” as the prerequisite for the escalation of the corruption among Government officials, the establishment of oligarchic structures….

    Show More
  • Comparative and Absolute Advantage
    4217 words | 17 pages

    Each international trade between the countries depends on numerous focal points of this exchange process. The economics and producers effectiveness measured by absolute advantage for these economics/producers. For example; if the producer needs lesser amount of contributions/inputs to provide specific product, then this producer has an absolute advantage in producing….

    Show More

Popular Essays