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Using Increases in Criminal Deportees from the US to Estimate the Effect of Crime on Economic Growth and Development in Latin America and the Caribbean

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  • Garfield O. Blake

    (Department of Economics, Central Connecticut State University, P.O. Box 4010, New Britain, CT 06050-4010, USA)

Abstract

Previous empirical studies have uncovered little evidence that crime hinders development, possibly due to simultaneity problems. This paper uses the increase in criminal deportees from the US as an instrumental variable to identify the causal effect of crime on economic growth and development. An increase in the number of criminal deportees received by a country is shown to substantially increase that country’s homicide rate. Using panel data for a sample of 30 Latin America and the Caribbean (LAC) countries, I show that the increase in crime is becoming a major obstacle to growth and development in the region.

Suggested Citation

  • Garfield O. Blake, 2015. "Using Increases in Criminal Deportees from the US to Estimate the Effect of Crime on Economic Growth and Development in Latin America and the Caribbean," Laws, MDPI, vol. 4(4), pages 1-18, November.
    • Handle: RePEc:gam:jlawss:v:4:y:2015:i:4:p:691-708:d:58367
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    References listed on IDEAS

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    6. Blake, Garfield O., 2014. "America's deadly export: Evidence from cross-country panel data of deportation and homicide rates," International Review of Law and Economics, Elsevier, vol. 37(C), pages 156-168.
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