Planning Horizon Liquidity constraints

M. Aslam Chaudhary and Malik Muhammad

Abstract

This Study examines leff's claim that corruption improves efficiency by avoiding cumbersome and lengthy government procedures in less developed countries. Using three different measures of corruption from the World Bank Survey, the study concludes that corruption does not improve government's efficiency for the sample of 54 less developed countries after controlling other variables. Thus, government instead of selling their inefficient units should adopt meaningful policies to combat corruption.