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Is Economic Growth Criminogenic for Firms In Developing Economies?

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  • Islam, Asif

Abstract

Several studies have explored the relationship between economy level crime rates or individual level crime and economic growth. However, few studies have examined the relationship between economic growth and crime against firms which is an important issue especially for developing economies. Using data for about 12,000 firms in 27 developing countries we find that economic growth has a negative effect on crime. We also find that several macro-economic factors can weaken or strengthen the relationship between crime and economic growth. The results are robust to various sensitivity checks.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36724.

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Date of creation: 15 Dec 2012
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Handle: RePEc:pra:mprapa:36724

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Keywords: Crime; Firms; Economic Growth; Development;

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  1. Gaviria, Alejandro, 2002. "Assessing the effects of corruption and crime on firm performance: evidence from Latin America," Emerging Markets Review, Elsevier, vol. 3(3), pages 245-268, September.
  2. Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
  3. Soares, Rodrigo R., 2004. "Development, crime and punishment: accounting for the international differences in crime rates," Journal of Development Economics, Elsevier, vol. 73(1), pages 155-184, February.
  4. Morgan Kelly, 2000. "Inequality And Crime," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 530-539, November.
  5. Dutta, Mousumi & Husain, Zakir, 2009. "Determinants of crime rates: Crime Deterrence and Growth in post-liberalized India," MPRA Paper 14478, University Library of Munich, Germany.
  6. Norman Loayza & Pablo Fajnzylber & Daniel Lederman, 2000. "Crime and Victimization: An Economic Perspective," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
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