Developing Countries, Corruption, Economic Growth, Public Sector, Public Services
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This paper is a part of ongoing empirical investigation of the effect of Corruption on the State government public service delivery. Corruption is defined as "the abuse of the use of public power, with the aim of achieving personal gains. (Sawzan., (2003), . Unhealthy relations between the institution and its boss in the public sector create an opportunity for the spread of corruption. Despite broad consensus among the scientific community about the negative effects of corruption on economic growth, some academics still argue that the effects of corruption on growth are contextual and related to factors such as the quality of governance and the type of political regime. In many developing countries, lacking of effective institutions and governance systems, corruption can offset institutional weaknesses and the effects of heavy bureaucracy and "energize" the economy. The literature indicates that corruption is likely to have a long-term negative effect on economic growth through its effects on investment, taxation, public spending and human development. Corruption is also likely to undermine a country's regulatory framework and the efficiency of public institutions, as the pursuit of immediate individual profits distorts public decision-making