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Does Crime Affect Firm Innovation? Evidence from Trinidad and Tobago

Author

Listed:
  • George Saridakis

    (Kingston Business School)

  • Anne-Marie Mohammed

    (The University of The West Indies)

  • Sandra Sookram

    (The University of The West Indies)

Abstract

Research has shown that a suitable business environment supports growth by encouraging investment and higher productivity which in turn impacts enterprise performance and accelerate economic growth. In Trinidad and Tobago, there has been an attempt to encourage investment in innovation through the provision of an enhanced business environment. According to a World Bank report (2007), there is a positive correlation between low rates of business expansion and investments and the increasing incidence of crime within the Caribbean region. This paper uses the 2010 Enterprise Survey dataset for Trinidad and Tobago produced by the World Bank to examine the link between crime and firm innovation. The results obtained in this study suggest that firms which are experiencing losses as a result of crime are less likely to adopt measures of innovation over their lifespan with past losses having both immediate and long-term impacts.

Suggested Citation

  • 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.
    • Handle: RePEc:ebl:ecbull:eb-15-00206
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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I2-P124.pdf
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    References listed on IDEAS

    as
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    Cited by:

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    2. 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.
    3. Forgione, Antonio Fabio & Migliardo, Carlo, 2023. "Mafia risk perception: Evaluating the effect of organized crime on firm technical efficiency and investment proclivity," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    4. 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.

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    More about this item

    Keywords

    crime; innovation; firms; Trinidad and Tobago;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • K0 - Law and Economics - - General

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