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The effect of tourism on crime in Italy: A dynamic panel approach

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  • Biagi, Bianca
  • Brandano, Maria Giovanna
  • Detotto, Claudio

Abstract

The purpose of this paper is to demonstrate that, all else being equal, for the case of Italy, tourist areas tend to have a greater amount of crime than non-tourist areas in the long run. Following the literature of the economics of crime à la Becker (1968) and Ehrlich (1973) and using a system GMM approach for the time span 1985-2003, the authors empirically test whether total crime in Italy is affected by tourist arrivals. Findings confirm the initial intuition of a positive relationship between tourism and crime in destinations. When controlling for the difference between tourists and residents in the propensity to be victimized, no relevant differences are found: the likelihood to be victimized is quite similar for the two groups. As a consequence, agglomeration and urbanisation effects seem to be the main explanation for the impact of tourism on crime. One can image that overcrowded cities provide more opportunities to criminals to commit illegal activities regardless of the number of visitors and residents in destinations. --

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2012-4.

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Date of creation: 2012
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Handle: RePEc:zbw:ifwedp:20124

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Keywords: Tourism; crime; externalities;

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References

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  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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Cited by:
  1. Brida, Juan Gabriel & Del Chiappa, Giacomo & Meleddu, Marta & Pulina, Manuela, 2012. "Cruise tourism exteralities and residents' support: A mixed approach," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(40), pages 1-26.
  2. Daniel Montolio & Simón Planells, 2013. "Does tourism boost criminal activity? Evidence from a top touristic country," Working Papers 2013/4, Institut d'Economia de Barcelona (IEB).

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