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ME EXPLAIN THIS TO ME IN TAGALOG .Corruption- Theoretical studies suggest that corruption may counteract government failure and promote economic growth in the short run,
ME EXPLAIN THIS TO ME IN TAGALOG .Corruption- Theoretical studies suggest that corruption may counteract government failure and promote economic growth in the short run, given exogenously determined suboptimal bureaucratic rules and regulations. As government failure is itself a function of corruption, however, corruption should have detrimental effects on economic growth in the long run. In practice, economists care more about such long-term consequences of corruption than the short-term effects. Corruption can affect resource allocation in two ways. First, it can change (mostly) private investors' assessments of the relative merits of various investments. This influence follows from corruption-induced changes in the relative prices of goods and services as well as of resources and factors of production, including entrepreneurial talent. Second, corruption can result in resource misallocation when decisions on how public funds will be invested, or which private investments will be permitted, are made by a corrupt government agency. The misallocation follows from the possibility that a corrupt decision-maker will consider potential "corruption payments" as one
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