THE IMPACT OF CORRUPTION IN THE PUBLIC SECTOR ON MICROECONOMIC ENTITIES IN DEVELOPING COUNTRIES

Abstract

The paper analyzes the impact of corruption in the public sector on microeconomic entities in developing countries. The work defines the concepts of bribery and corruption, and in addition to the legal context, it also generates the views of the authors of professional literature from that domain. The conditions and effects of corruption on the operations of microeconomic entities in developing countries have been reviewed. Based on the analyzed literature and the synthesis of collected data, an opinion has been formulated and constructive suggestions of possible alternative responses to such a critical factor have been given. In the final part of the paper, we have arrived at the conclusion that corruption entails the need for an adequate response of state policy, which would be based on rigorous judicial practice, as well as a marketing campaign to build public awareness in order to prevent such a destructive factor on the functioning of microeconomic entities in developing countries.