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Relations between economic development, violence and corruption: A nonparametric approach with DEA and data panel

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  • Alexander Cotte Poveda
  • Jorge Martinez Carvajal
  • Nicolas Ronderos Pulido

Abstract

This research analyses the connection between homicides, corruption, and economic development in Colombian government departments. This empirical research explores the trends of homicides, corruption, and economic development utilizing different estimation techniques: DEA and econometric analysis with panel data. The DEA is applied to assess socioeconomic performance and interactions of homicides, corruption, and economic progress in Colombian, according to the rank and uncertainty of corruption and violence. Econometric models are Generalized Method of Moments (GMM) estimates to determine the incidence of some institutional and socioeconomic variables on the score range of uncertainty and risk generated by DEA in terms of the level of corruption and homicides. Estimates with DEA data envelopment analysis shows that the risk score associated with homicides and corruption has different tendencies, socioeconomic and political instability are causes that explain the behaviour of this variable over time. The results of the panel data estimation show that there are several hypotheses and theories that explain the effects of corruption and violence on the economic development of countries. This finding indicates the importance of developing effective policies that strengthen public administration, the judicial structure, and public social spending and thus rupture the cycles of corruption and homicides that prevent the creation of sustained economic growth and development.

Suggested Citation

  • Alexander Cotte Poveda & Jorge Martinez Carvajal & Nicolas Ronderos Pulido, 2019. "Relations between economic development, violence and corruption: A nonparametric approach with DEA and data panel," Serie de Documentos en Economía y Violencia 17595, Centro de Investigaciones en Violencia, Instituciones y Desarrollo Económico (VIDE).
    • Handle: RePEc:col:000137:017595
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    Cited by:

    1. Aldenis Vásquez & Rafael Alvarado & Brayan Tillaguango & Cem Işık & Muntasir Murshed, 2023. "Impact of Social and Institutional Indicators on the Homicide Rate in Ecuador: An Analysis Using Advanced Time Series Techniques," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 1-22, September.
    2. Ella Hugo & David A. Savage & Friedrich Schneider & Benno Torgler, 2021. "Two sides of the same coin or two different coins? Exploring the duality of corruption in Latin America," CREMA Working Paper Series 2021-26, Center for Research in Economics, Management and the Arts (CREMA).
    3. Dieu-Merci Akonkwa Nyamuhirwa & Bola Amoke Awotide & Doux Baraka Kusinza & Valery Kasereka Bishikwabo & Jacob Mignouna & Zoumana Bamba & Paul-Martin Dontsop Nguezet, 2022. "A Comparative Analysis of Technical Efficiency and Profitability of Agribusiness and Non-Agribusiness Enterprises in Eastern DRC," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    4. Pablo Ponce & José Álvarez-García & Mary Cumbicus & María de la Cruz del Río-Rama, 2021. "Spatial Externalities of Income Inequality on Security in Latin America," Mathematics, MDPI, vol. 9(3), pages 1-19, January.
    5. Tatiana Kolomoiets & Oleksii Makarenkov, 2022. "Transition Of Quantitative Indicators Of Corruption To The Quality Of Extreme Forms Of Denial Of Legal Values," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 8(2).

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