Effects Of Corruption On Private Investments

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Register to read the introduction… This lack of transparency reduces the probability of detection. Accountability is also reduced as decisions are usually made through the chain of commands. In addition, military projects are usually highly complex and evaluation of success difficult. Research has found that corruption is positively correlated with the level of military spending (Gupta 2000).

Effects of Corruption on Private Investments Corruption is found to adversely affect local and foreign private investments through several means. Make Investments Unattractive. Corruption reduces returns, increases risk, and

magnifies uncertainty of investments for both local and foreign investors, making investments less attractive. Corruption increases the monetary and other direct and indirect costs of investments and reduces their returns. Increase risk and uncertainty are the more detrimental effects of corruption (Wei 1997). In most countries, the payment of bribes does not guarantee that the investment can proceed successfully, hence greatly increases the

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The Hong Kong Polytechnic University MGT 682 Independent Studies Corruption and Bribery in
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