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A Comparison between Corruption and Smuggling: Which One Is Worse?
Department of Economics and Finance, University of South Alabama, Mobile, AL, USA
- 1 Department of Economics and Finance, University of South Alabama, Mobile, AL, USA
Theoretical Economics Letters·Volume 08 (2018)·Pages 159–165·Published 5 February 2018·DOI10.4236/tel.2018.82011
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Abstract
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.
KeywordsCorruptionSmugglingTariffWelfare Cost
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