Corruption reduces growth most directly because governments invest in projects with low productivity.

Question

Quizplus · Accepted Answer

Corruption often diverts public resources towards projects that are not efficient, which reduces economic growth. When resources are invested in projects with low productivity, the economy will not produce as much as it could if the resources were invested more wisely. This reduces the potential for economic growth.

Corruption Reduces Growth Most Directly Because Governments Invest in Projects