BE DIS - 5

Bribery has become very widespread in the developing nation where these kinds of bribery make the transaction cost increase thus causing insecurity in the country's economic growth.  Bribery, therefore, causes ineffective results on economic growth and expansion where eventually it affects domestic and foreign investments.  Ineffective economic growths are also experienced due to the relocation of talents owing to the distortion of technology choices and sectorial priorities (Mo, P. H. 2001). In addition to that, corruption also causes a lack of proper control in public entities and lack of transparency. As a result, in the case where there is no sufficient political or legal basis will control that enhances transparency the corruption is going to be very high. In addition to that, corruption is also capable of reducing tax revenues since it compromises the ability of the government to collect fees and taxes.