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A Comparison between Corruption and Smuggling: Which One Is Worse?
2018
Theoretical Economics Letters
Corruption is a universal issue for almost all developing and underdeveloped countries. It is considered as one of the most important reasons that hamper economic growth. I follow a simple graphical approach to show the dreadful economic impact of corruption on the economy. I compare two evils, corruption with smuggling, and find that the welfare cost of corruption is higher than that of smuggling. I suggest merit-based recruitment of government officers and an independent judicial system to eradicate corruption from the economy.
doi:10.4236/tel.2018.82011
fatcat:s455elx6fjgzzkkzs6qhlhov5q