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Globalization, Global Public 'Bads', Rising Criminal Activity and Growth

Author

Listed:
  • David E. Bloom
  • Mansoob Murshed

Abstract

By globalization we mean an external shock; specifically an increased world demand for various goods (or bads) including the products and services which are illegal. We analyse the effects of these shocks on growth and capital stocks by utilizing two different models. The first examines an exogenous shock in the context of a single country macroeconomic Ramsey growth model. The shadow activity generally has a negative impact on productivity and the capital stock.

Suggested Citation

  • David E. Bloom & Mansoob Murshed, 2001. "Globalization, Global Public 'Bads', Rising Criminal Activity and Growth," WIDER Working Paper Series DP2001-50, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-50
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