Corruption – a global challenge
Abstract
In recent years, corruption has established itself as the most common and damaging form of economic crime. It repeals natural market mechanisms, slows down economic growth and inhibits innovation. However, the results of illegally - by corruption - acquired increases in demand are economic growth and an increase in employment, at least in the short term.
This study calculates the macroeconomic effects of an increase in demand generated by corruption on the basis of integrated input-output tables.With the help of the WifOR calculation model it is possible to quantify the direct, indirect and induced effects on the following indicators: production demand, value added, income, employment and fiscal effects.
Gliederung der Studie
- 1 Introduction
- 4 What is corruption?
- 4 Terms and forms of corruption
- 10 Possiple causes of corrupt activities
- 13 Theoretically and empirically supported effects of corruption
- 13 Social impacts of corruption
- 19 Social perception / public opinion about corruption
- 20 Impact of corruption on businesses
- 26 Methodology to quantify the macroeconomic effects
- 28 Basic structure of the open and static input-output model
- 31 Determination of production and employment effects without consideration of the income-consumption cycle
- 34 Determination of the aggregated production and employment effects with the income-consumption cycle taken into account
- 38 Identification of the fiscal effects
- 41 Constraints of the model approach
- 44 Quantification of the effects of an increase in demand induced
by corruption - 52 Conclusion
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