Corruption in Public Investment Hinders Private Investment in Developing Countries
The report looks at how corruption and the quality of public investment affect private investment in developing countries from 1970 to 2000. Private investment decreased in 1999 compared to 1998, but public investment increased. Corruption is found to lower the quality of public investment, which in turn leads to lower private investment. This suggests that corruption can have negative effects on economic growth and sustainable development in these countries.