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Crime, Business Conduct and Investment Decisions: Enterprise Survey Evidence from 34 Countries in Europe and Asia

Author

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  • Krkoska Libor

    (European Bank for Reconstruction and Development)

  • Robeck Katrin

    (European Bank for Reconstruction and Development)

Abstract

This paper investigates crime against enterprises, using a simple modelling framework and enterprise surveys conducted in 34 countries in Europe and Asia between 2002 and 2005. The empirical results show that crime has an especially large negative impact on micro enterprises that handle large cash balances. Enterprises with worse business conduct are also more likely to be targeted by crime. The perception of crime is shown to be associated with experience of street crime on the enterprise level and experience of organized crime on the country level. The paper also highlights the deterrent effect of crime on enterprise investment decisions.

Suggested Citation

  • Krkoska Libor & Robeck Katrin, 2009. "Crime, Business Conduct and Investment Decisions: Enterprise Survey Evidence from 34 Countries in Europe and Asia," Review of Law & Economics, De Gruyter, vol. 5(1), pages 493-516, September.
    • Handle: RePEc:bpj:rlecon:v:5:y:2009:i:1:n:20
    DOI: 10.2202/1555-5879.1299
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    References listed on IDEAS

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    Cited by:

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    2. André Filipe Guedes Almeida & Gabriel Caldas Montes, 2020. "Effects of crime and violence on business confidence: evidence from Rio de Janeiro," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(7), pages 1669-1688, May.
    3. Gaetano Perone, 2020. "The impact of agribusiness crimes on food prices: evidence from Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 877-909, October.
    4. George Saridakis & Anne-Marie Mohammed & Sandra Sookram, 2015. "Does Crime Affect Firm Innovation? Evidence from Trinidad and Tobago," Economics Bulletin, AccessEcon, vol. 35(2), pages 1205-1215.
    5. Folorunsho M. Ajide & Olasupo I. Bankefa & Rufus A. Ajisafe, 2018. "Criminal Activities and Firms’ Market Power: Evidence from Nigerian Banking Industry," Global Business Review, International Management Institute, vol. 19(5), pages 1207-1223, October.
    6. Yung Hyeock Lee & In Hyeock (Ian) Lee, 2022. "A regional analysis of crime heterogeneity and small- and medium-sized enterprise (SME) location choices: recent evidence from South Korea," Asian Business & Management, Palgrave Macmillan, vol. 21(4), pages 569-597, September.
    7. Josef Brada & Arthur King & Chia-Ying Ma, 2010. "Investing in Turbulent Times: The Investment Behavior of Polish Firms in the Early Transition," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 17(1), pages 1-21, May.
    8. Akbar, Yusaf H. & Kisilowski, Maciej, 2015. "Managerial agency, risk, and strategic posture: Nonmarket strategies in the transitional core and periphery," International Business Review, Elsevier, vol. 24(6), pages 984-996.
    9. BenYishay, Ariel & Pearlman, Sarah, 2014. "Crime and Microenterprise Growth: Evidence from Mexico," World Development, Elsevier, vol. 56(C), pages 139-152.
    10. Gaetano Perone, 2018. "I costi della criminalità organizzata nel settore agroalimentare italiano," Moneta e Credito, Economia civile, vol. 71(281), pages 37-66.
    11. Víctor Hugo Torres Preciado, 2017. "Desempleo y criminalidad en los estados de la frontera norte de México: un enfoque espacial bayesiano de vectores auto-regresivos. (Unemployment and crime in the Northern-border states of Mexico: a sp," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 25-58, May.

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