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An important body of knowledge was acquired through theoretical research done in the 1970s by Jagdish Bhagwati, Anne Krueger, and Susan Rose-Ackerman, among others.A key principle is that corruption can occur where rents exist--typically, as a result of government regulation--and public officials have discretion in allocating them.
Regression analysis provides some evidence that if one controls for other forms of institutional inefficiency, such as political instability, corruption can still be shown to reduce growth.
Nevertheless, it is hard to show conclusively that the cause of the problem is corruption alone, rather than the institutional weaknesses that are closely associated with it.
Nowadays, we can see the spread of corruption in many sphere of life.
People often compare it with the cancer that wracks public life.
This renewed interest has led to a new flurry of empirical research on the causes and consequences of corruption.
Economists know quite a bit about the causes and consequences of corruption.
In most government offices, counters dealing with the public have the most evident corruption facts.
The work simply won’t be done if nobody pays for it although it may be declared as free of charge. This type of people will do anything to get more income.
Over the last few years, the issue of corruption--the abuse of public office for private gain--has attracted renewed interest, both among academics and policymakers.
There are a number of reasons why this topic has come under recent inspection.