IDEAS home Printed from https://ideas.repec.org/a/bjw/econen/v14y2024i3p3-17.html
   My bibliography  Save this article

Impact of violent and property crimes on microfirms’ performance: The Philippine experience

Author

Listed:
  • Leo Delaric Manansala

    (De La Salle University - Dasmarinas, Dasmarinas City, Cavite)

  • Alice Tibayan Valerio

    (De La Salle University - Dasmarinas, Dasmarinas City, Cavite)

Abstract

Crime creates business uncertainties that can disturb, if not destroy, the already vulnerable business environment. Microfirms, due to their smallness, are more susceptible to the effects of crime as they lack the resources to invest in protection and endure its effects. Many empirical investigations on the subject matter have not yet produced a definite conclusion. Thus, this study is imperative. This study fills the inconclusiveness, vagueness, and mixed evidence of the crimes’ impact on entrepreneurship in the literature. This quantitative research used secondary data consisting of a two-panel micro-level data set with a total of 1,190 observations from 2009 to 2018. The fixed effect and random effect regression models were used to know how crime rates of physical assault, theft, and robbery affect microfirms’ performance, and the causality direction and dynamics were investigated using MWALD Granger causality. The result highlighted the strong evidence depicting the negative effects of crime on microfirms’ performance. A bidirectional causality also runs between microfirms’ performance and crime, but there is a negative impact on both variables in the long run. The findings underscored the importance of multisectoral participation in preventing and mitigating the effect of crimes against persons and property on microfirms and promoting a business-friendly environment.

Suggested Citation

  • Leo Delaric Manansala & Alice Tibayan Valerio, 2024. "Impact of violent and property crimes on microfirms’ performance: The Philippine experience," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 14(3), pages 3-17.
    • Handle: RePEc:bjw:econen:v:14:y:2024:i:3:p:3-17
    DOI: 10.46223/HCMCOUJS.econ.en.14.3.2822.2024
    as

    Download full text from publisher

    File URL: https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/2822/2034
    Download Restriction: no
    File URL: https://libkey.io/10.46223/HCMCOUJS.econ.en.14.3.2822.2024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Josh Matti & Amanda Ross, 2016. "Does crime affect entrepreneurship? A discussion of the current literature," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(3), pages 254-272, November.
    2. Paolo Pinotti, 2015. "The Economic Costs of Organised Crime: Evidence from Southern Italy," Economic Journal, Royal Economic Society, vol. 125(586), pages 203-232, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iacopo Odoardi & Dario D’Ingiullo & Ada Di Nucci & Davide Quaglione, 2024. "Exploring the Influence of Crime on NEET Rates: A Regional Analysis of Italy," Merits, MDPI, vol. 4(2), pages 1-14, April.
    2. Gaurav Khanna & Carlos Medina & Anant Nyshadham & Jorge Tamayo & Nicolas Torres, 2023. "Formal Employment and Organised Crime: Regression Discontinuity Evidence from Colombia," The Economic Journal, Royal Economic Society, vol. 133(654), pages 2427-2448.
    3. Galletta, Sergio, 2017. "Law enforcement, municipal budgets and spillover effects: Evidence from a quasi-experiment in Italy," Journal of Urban Economics, Elsevier, vol. 101(C), pages 90-105.
    4. Francesca Maria Calamunci & Federico Fabio Frattini, 2023. "When Crime Tears Communities Apart: Social Capital and Organised Crime," Working Papers 2023.08, Fondazione Eni Enrico Mattei.
    5. Isaksen, Elisabeth Thuestad, 2020. "Have international pollution protocols made a difference?," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    6. repec:osf:osfxxx:s8ayp_v1 is not listed on IDEAS
    7. Hjalmarsson, Randi & Machin, Stephen & Pinotti, Paolo, 2024. "Crime and the labor market," Handbook of Labor Economics,, Elsevier.
    8. Pierfrancesco Rolla & Patricia Justino, 2022. "The social consequences of organized crime in Italy," WIDER Working Paper Series wp-2022-106, World Institute for Development Economic Research (UNU-WIDER).
    9. Arne Steinkraus, 2019. "Estimating Treatment Effects With Artificial Neural Nets – A Comparison to Synthetic Control Method," Economics Bulletin, AccessEcon, vol. 39(4), pages 2778-2791.
    10. Tomas Williams & Pablo Slutzky & Mauricio Villamizar-Villegas, 2019. "Drug Money and Bank Lending: The Unintended Consequences of Anti-Money Laundering Policies," Working Papers 2019-5, The George Washington University, Institute for International Economic Policy, revised May 2020.
    11. Becker, Maike & Pfeifer, Gregor & Schweikert, Karsten, 2021. "Price Effects of the Austrian Fuel Price Fixing Act: A Synthetic Control Study," Energy Economics, Elsevier, vol. 97(C).
    12. Marco Dugato & Francesco Calderoni & Gian Maria Campedelli, 2020. "Measuring Organised Crime Presence at the Municipal Level," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 237-261, January.
    13. Campana, Paolo & Giovannetti, Andrea, 2025. "The structure of cooperation among organized crime groups: A network study of Merseyside, UK," Journal of Criminal Justice, Elsevier, vol. 96(C).
    14. Roberto Ganau & Andrés Rodríguez†Pose, 2018. "Industrial clusters, organized crime, and productivity growth in Italian SMEs," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 363-385, March.
    15. Roberta De Luca & Rosalia Greco & Giovanni Immordino, 2025. "Mafia Infiltration and Ownership Dynamics in Italian Companies during Covid-19," CSEF Working Papers 750, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    16. Caglayan, Mustafa & Flamini, Alessandro & Jahanshahi, Babak, 2021. "Hindering human capital accumulation: A hidden cost of the silent mafia?," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 828-845.
    17. Niklas Potrafke & Fabian Ruthardt & Kaspar Wuthrich, 2020. "Protectionism and economic growth: Causal evidence from the first era of globalization," Papers 2010.02378, arXiv.org, revised Mar 2022.
    18. Brodeur, Abel & Yousaf, Hasin, 2019. "The Economics of Mass Shootings," IZA Discussion Papers 12728, Institute of Labor Economics (IZA).
    19. Marco Di Cataldo & Elena Renzullo & Andrés Rodríguez-Pose, 2025. "Cohesion or collusion? EU funds in places with corrupt local institutions," Papers in Evolutionary Economic Geography (PEEG) 2510, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2025.
    20. Forgione, Antonio Fabio & Migliardo, Carlo, 2023. "Mafia risk perception: Evaluating the effect of organized crime on firm technical efficiency and investment proclivity," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    21. Sandra Achten & Lars Beyer & Antje-Mareike Dietrich & Dennis Ebeling & Christian Lessmann & Arne Steinkraus, 2019. "Large scale infrastructure investment and economic performance – a case study of Oresund," Applied Economics Letters, Taylor & Francis Journals, vol. 26(1), pages 21-26, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjw:econen:v:14:y:2024:i:3:p:3-17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vu Tuan Truong (email available below). General contact details of provider: https://journalofscience.ou.edu.vn/index.php/econ-en .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.