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Gov-Aargh-Nance – “Even Criminals Need Law And Order”

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Author Info

  • de Groot, Olaf J.

    ()
    (DIW Berlin)

  • Rablen, Matthew D.

    (Brunel University)

  • Shortland, Anja

    ()
    (Brunel University)

Abstract

We present a theoretical model postulating that the relationship between crime and governance is “hump-shaped”, rather than linearly decreasing, when criminals need access to markets. State collapse, violent conflict and a lack of infrastructure are not conducive for the establishment of any business, legal or illegal. At the bottom end of the spectrum, therefore, criminal gangs benefit from improved governance, especially when this is delivered informally. With significant improvements in formal governance criminal activities decline. We use data from the International Maritime Bureau to create a new dataset on piracy and find strong and consistent support for this non-linear relationship.

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Bibliographic Info

Paper provided by Network of European Peace Scientists in its series NEPS Working Papers with number 7/2011.

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Length: 39 pages
Date of creation: 30 Jan 2011
Date of revision:
Handle: RePEc:ris:nepswp:2011_007

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Web page: http://www.europeanpeacescientists.org/
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Keywords: Governance; Crime; Piracy; Informal governance; Law enforcement;

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References

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  1. Helge Berger & Volker Nitsch, 2008. "Gotcha! A Profile of Smuggling in International Trade," DEGIT Conference Papers c013_026, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Anja Shortland & Marc Vothknecht, 2011. "Combating "Maritime Terrorism" off the Coast of Somalia," Economics of Security Working Paper Series 47, DIW Berlin, German Institute for Economic Research.
  3. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December.
  4. Avinash Dixit, 2003. "On Modes of Economic Governance," Econometrica, Econometric Society, vol. 71(2), pages 449-481, March.
  5. Leeson Peter T. & Williamson Claudia R., 2009. "Anarchy and Development: An Application of the Theory of Second Best," The Law and Development Review, De Gruyter, vol. 2(1), pages 77-96, July.
  6. Sarah Percy & Anja Shortland, 2010. "The Business of Piracy in Somalia," Discussion Papers of DIW Berlin 1033, DIW Berlin, German Institute for Economic Research.
  7. Raymond Fisman & Shang-Jin Wei, 2007. "The Smuggling of Art, and the Art of Smuggling: Uncovering the Illicit Trade in Cultural Property and Antiques," NBER Working Papers 13446, National Bureau of Economic Research, Inc.
  8. Oriana Bandiera, 2003. "Land Reform, the Market for Protection, and the Origins of the Sicilian Mafia: Theory and Evidence," Journal of Law, Economics and Organization, Oxford University Press, vol. 19(1), pages 218-244, April.
  9. Yoshiaki Azuma & Herschel I. Grossman, 2002. "A Theory of the Informal Sector," Working Papers 2002-07, Brown University, Department of Economics.
  10. Peter T. Leeson, 2009. "The Laws of Lawlessness," The Journal of Legal Studies, University of Chicago Press, vol. 38(2), pages 471-503, 06.
  11. Friedman, Eric & Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 2000. "Dodging the grabbing hand: the determinants of unofficial activity in 69 countries," Journal of Public Economics, Elsevier, vol. 76(3), pages 459-493, June.
  12. Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2011. "Gov-aargh-nance: "Even Criminals Need Law and Order"," Economics of Security Working Paper Series 46, DIW Berlin, German Institute for Economic Research.
  13. Soares, Rodrigo R, 2004. "Crime Reporting as a Measure of Institutional Development," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 851-71, July.
  14. Leeson, Peter T., 2007. "Better off stateless: Somalia before and after government collapse," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 689-710, December.
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Citations

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Cited by:
  1. Sarah Percy & Anja Shortland, 2010. "The Business of Piracy in Somalia," Discussion Papers of DIW Berlin 1033, DIW Berlin, German Institute for Economic Research.
  2. de Groot, Olaf J. & Rablen, Matthew D. & Shortland, Anja, 2011. "Gov-Aargh-Nance – “Even Criminals Need Law And Order”," NEPS Working Papers 7/2011, Network of European Peace Scientists.
  3. Singh Currun & Bedi Arjun Singh, 2013. "Regional Dimensions of Somali Piracy and Militant Islamism: Anthropological and Econometric Evidence," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 369-380, December.
  4. Shortland Anja & Percy Sarah, 2013. "Governance, Naval Intervention and Piracy in Somalia," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(2), pages 275-283, August.
  5. Inmaculada Martínez-Zarzoso & Sami Bensassi, 2013. "The Price Of Modern Maritime Piracy," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(5), pages 397-418, October.
  6. Bellais Renaud, 2013. "Fighting Piracy and International Public Goods: The Atalanta Experiment in the Horn of Africa V3," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(1), pages 73-101, April.
  7. Michael Brzoska & Raphael Bossong & Eric van Um, 2011. "Security Economics in the European Context: Implications of the EUSECON Project," Economics of Security Working Paper Series 58, DIW Berlin, German Institute for Economic Research.
  8. Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2012. "Barrgh-gaining with Somali Pirates," Economics of Security Working Paper Series 74, DIW Berlin, German Institute for Economic Research.
  9. Anja Shortland & Federico Varese, 2012. "The Business of Pirate Protection," Economics of Security Working Paper Series 75, DIW Berlin, German Institute for Economic Research.
  10. Olaf J. de Groot & Marc Vothknecht, 2011. "What Can Be Done to Reduce the Occurrence of Piracy in the Short and Long Run?," EUSECON Policy Briefing 2, DIW Berlin, German Institute for Economic Research.

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