What is the relationship between corruption in a country (i.e., bribe- taking by government officials) and economic growth? Is corruption always bad?

There is a negative relationship between corruption and economic growth. When government officials engage in corrupt practices such as taking bribes, it leads to misallocation of resources, reduced foreign investment, and ultimately, slows down economic growth. Corruption undermines the rule of law, undermines public trust in government institutions, and creates an environment that is not conducive to economic development.

Furthermore, corruption often leads to a concentration of wealth and power in the hands of a few individuals, leading to increased inequality and poverty. Corruption also creates a distortion in the market and a lack of competition, which results in inefficient markets and hinders economic growth.

However, in some cases, corruption may be seen as a necessary evil. In countries where bureaucratic processes are slow and cumbersome, and officials demand bribes to expedite processes, corruption may be seen as a way to get things done. However, this type of corruption is not sustainable and ultimately hinders long-term economic growth.

In conclusion, corruption is generally bad for economic growth, as it undermines the rule of law, hinders competition, and creates an inefficient market. Although in some cases, it may be seen as a necessary evil, it is not a sustainable solution and ultimately leads to more harm than good.