TITLE:
A Comparison between Corruption and Smuggling: Which One Is Worse?
AUTHORS:
Khandokar Istiak
KEYWORDS:
Corruption, Smuggling, Tariff, Welfare Cost
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.2,
February
7,
2018
ABSTRACT: Corruption is a universal issue for almost all
developing and underdeveloped countries. It is considered as one of the most
important reasons that hamper economic growth. I follow a simple graphical
approach to show the dreadful economic impact of corruption on the economy. I
compare two evils, corruption with smuggling, and find that the welfare cost of
corruption is higher than that of smuggling. I suggest merit-based recruitment
of government officers and an independent judicial system to eradicate
corruption from the economy.