Question

Which relationship would you expect to exist between measures of corruption and living standards at the country level? Explain by which channel corruption might affect living standards.

Short answer

For highly developed countries, the link between corruption measures and living standards is negative.

Step-by-step solution

Introduction

At the national level, corruption has an impact on living standards since it inhibits economic progress.

Corruption is the misappropriation of resources and authority for the purpose of achieving illicit aims.

Explanation

Forhighlydevelopednations,thelinkbetweenindicesofcorruptionandlivingstandardsisnegative.

Corruption results from the abuse of power and resources, which has a detrimental impact on living standards.

Corruption has an impact on the country's living standards since it harms the entire society.