Crime and Economic Growth: Evidence from India
AbstractThis paper empirically examines the causality between crime rates and economic growth using state level data in India. A reduced form equation has been estimated using instrumental variable approach to correct for joint endogeneity between crime and economic growth. Higher crimes may reduce level of per capita income and its growth rate. Controlling intentional homicide and robbery rates in each of the states to the minimum level they observed during 1991-2011 period, the predicted annual growth in per capita income could have been higher by 1.57 and 1.2 percentage points, respectively. The average annual gain in growth rate by bringing down the homicide rate at a level of national minimum could be 0.62 percentage points. Note that the loss in growth rate is lower or negative in the states that have higher per capita income.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 48794.
Date of creation: 2013
Date of revision:
Crime; economic growth; panel data; India.;
Find related papers by JEL classification:
- H10 - Public Economics - - Structure and Scope of Government - - - General
- H4 - Public Economics - - Publicly Provided Goods
- K1 - Law and Economics - - Basic Areas of Law
- K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-10 (All new papers)
- NEP-DEV-2013-08-10 (Development)
- NEP-FDG-2013-08-10 (Financial Development & Growth)
- NEP-PBE-2013-08-10 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luciano Mauro & Gaetano Carmeci, 2007. "A Poverty Trap of Crime and Unemployment," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 450-462, 08.
- Kislaya Prasad, 2012. "Economic Liberalization and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 55(4), pages 925 - 948.
- Kumar, Surender & Managi, Shunsuke, 2009.
"Productivity and Convergence in India: State Level Analysis,"
23738, University Library of Munich, Germany.
- Kumar, Surender & Managi, Shunsuke, 2012. "Productivity and convergence in India: A state-level analysis," Journal of Asian Economics, Elsevier, vol. 23(5), pages 548-559.
- M. Hashem Pesaran, 2007.
"A simple panel unit root test in the presence of cross-section dependence,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
- Pesaran, M.H., 2003. "A Simple Panel Unit Root Test in the Presence of Cross Section Dependence," Cambridge Working Papers in Economics 0346, Faculty of Economics, University of Cambridge.
- Gary S. Becker, 1974.
"Crime and Punishment: An Economic Approach,"
in: Essays in the Economics of Crime and Punishment, pages 1-54
National Bureau of Economic Research, Inc.
- Steve Bond & Asli Leblebicioglu & Fabio Schiantarelli, 2004.
"Capital Accumulation and Growth: A New Look at the Empirical Evidence,"
2004-W08, Economics Group, Nuffield College, University of Oxford.
- Steve Bond & Asli Leblebicioglu & Fabio Schiantarelli, 2010. "Capital accumulation and growth: a new look at the empirical evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 25(7), pages 1073-1099, November/.
- Stephen Bond & Asli Leblebicioglu, 2004. "Capital Accumulation and Growth: A New Look at the Empirical Evidence," Economics Series Working Papers 2004-W08, University of Oxford, Department of Economics.
- Steve Bond & Asli Leblebicioglu & Fabio Schiantarelli, 2004. "Capital Accumulation and Growth: A New Look at the Empirical Evidence," Boston College Working Papers in Economics 591, Boston College Department of Economics, revised 02 Aug 2007.
- Bond, Steve & Leblebicioglu, Asli & Schiantarelli, Fabio, 2004. "Capital Accumulation and Growth: A New Look at the Empirical Evidence," IZA Discussion Papers 1174, Institute for the Study of Labor (IZA).
- Kumar, Surender & Kumar, Sudesh, 2013. "Does Modernization Improve Performance: Evidence from Indian Police," MPRA Paper 45801, University Library of Munich, Germany.
- C. Detotto & M. Pulina, 2009. "Does more crime mean fewer jobs? An ARDL model," Working Paper CRENoS 200905, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Ray Burnham & Robert Feinberg & Thomas Husted, 2004. "Central city crime and suburban economic growth," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 917-922.
- Alexander Cotte Poveda, 2012.
"Violence and economic development in Colombian cities: a dynamic panel data analysis,"
SERIE DE DOCUMENTOS EN ECONOMÃA Y VIOLENCIA
010080, CENTRO DE INVESTIGACIONES EN VIOLENCIA, INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE).
- Alexander Cotte Poveda, 2012. "Violence And Economic Development In Colombian Cities: A Dynamic Panel Data Analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(7), pages 809-827, October.
- N. Gregory Mankiw & David Romer & David N. Weil, 1990.
"A Contribution to the Empirics of Economic Growth,"
NBER Working Papers
3541, National Bureau of Economic Research, Inc.
- M Arellano & O Bover, 1990.
"Another Look at the Instrumental Variable Estimation of Error-Components Models,"
CEP Discussion Papers
dp0007, Centre for Economic Performance, LSE.
- Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
- Pasaran, M.H. & Im, K.S. & Shin, Y., 1995.
"Testing for Unit Roots in Heterogeneous Panels,"
Cambridge Working Papers in Economics
9526, Faculty of Economics, University of Cambridge.
- Ishita Chatterjee & Ranjan Ray, 2009. "Crime, Corruption and Institutions," Development Research Unit Working Paper Series 20-09, Monash University, Department of Economics.
- Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
- Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July.
- Kausik Chaudhuri & Payel Chowdhury & Kevin Reilly, 2013. "A New Perspective on Violent Crime Burden Index: Evidence from Indian Districts," Social Indicators Research, Springer, vol. 110(2), pages 771-789, January.
- Claudio Detotto & Manuela Pulina, 2013. "Does more crime mean fewer jobs and less economic growth?," European Journal of Law and Economics, Springer, vol. 36(1), pages 183-207, August.
- Claudio Detotto & Edoardo Otranto, 2010. "Does Crime Affect Economic Growth?," Kyklos, Wiley Blackwell, vol. 63(3), pages 330-345, 08.
- Jean Drèze & Reetika Khera, 2000. "Crime, Gender, and Society in India: Insights from Homicide Data," Population and Development Review, The Population Council, Inc., vol. 26(2), pages 335-352.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.