Corruption At The Firm s Level And The Global Level Essay

In the past decades, there were many studies that carefully examined the issue of corruption in the institutional framework as well as its significance in politics and economics. Jakob Svensson (2005) has published a paper in which he defines corruption and compares it to taxation and lobbying. Svensson talks about the main measures of corruption in the world and a variety of institutional theories that try to explore causal factors of this issue and possible policies that could eliminate its extent in any country. There have also been studies that examined corruption at the firm’s level and the global level. Fisman and Svensson (2001) have found some significant evidence of the importance of corruption at the microeconomic level. They looked at the bribe payments in Uganda and obtained significant results studying the relationship between firms’ growth and bribery. Moreover, Mauro (1995) published his work which examines the global level of corruption and its influence on economic growth. According to his findings, the effect of corruption on economic growth is relative and increases in power only when corruption is combined with other factors. In this paper, we will explore the definition of corruption and its reflection on the microeconomic and macroeconomic levels. What is corruption? In â€Å"Eight Questions about Corruption† Jakob Svensson draws a parallel between corruption and taxes and between corruption and lobbying. Corruption most commonly takes a formShow MoreRelatedThe Global Issue Of South Africa1516 Words   |  7 Pages â€Æ' Engagement Summary The Global Issue in South Africa Corruption has overrun all aspects of South African culture since the early 1900’s. The government, the police force, and all of the citizens commit acts of corruption on an everyday basis in order to secure contracts, grants, and in order to earn more money. 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