grabs and the decline in value of the government output due to inefficient allocation to unprofitable companies (Wolf, Yeh, Zycher, Eberstadt, Lee, 2003). Corruption also leads to socio-political problems such as the increasing income gap of the society(Wu, Zhu, 2011) and the resultant loss of confidence towards the ruling party manifesting as physical unrest that harms China’s economy indirectly (Pei, 2006). Now, foreigners are increasingly deterred by the unreasonable amount of extra payments needed…
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