ABSTRACT. This paper seeks to fill a gap in the current literature by examining the negative welfare effects of corruption, the interaction between political connections and the effect of corruption, and the causes and consequences of corruption. The literature on the underlying reasons driving firms to bribe governmental officials, the interrelationship between democracy and corruption growth, the pervasive effect of corruption on growth, the existence of moral costs of corruption, and the inefficient economic institutions that corruption might circumvent is relevant to this discussion. pp. 30–34

Keywords: corruption growth, governance, democracy, political connection

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