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Economic growth and crime against small and medium sized enterprises in developing economies

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  • Asif Islam

Abstract

Several studies have explored the relationship between economy-level crime rates or individual-level crime and economic growth. However, few studies have examined the relationship between economic growth and crime against firms. Using data for about 12,000 firms in 27 developing countries this study finds that economic growth is negatively associated with crime. This relationship is stronger for small and medium firms than large firms. The study also explores several economy-wide factors and their influence on the growth–crime relationship for small and medium enterprises. The results are robust to various sensitivity checks. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Asif Islam, 2014. "Economic growth and crime against small and medium sized enterprises in developing economies," Small Business Economics, Springer, vol. 43(3), pages 677-695, October.
    • Handle: RePEc:kap:sbusec:v:43:y:2014:i:3:p:677-695
    DOI: 10.1007/s11187-014-9548-6
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    Cited by:

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    2. Grabrucker, Katharina & Grimm, Michael, 2018. "Does crime deter South Africans from self-employment?," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 413-435.
    3. Juan Nelson Martinez Dahbura, 2016. "The Short-Term Impact of Crime on School Enrollment and School Choice: Evidence from El Salvador," Keio-IES Discussion Paper Series 2016-012, Institute for Economics Studies, Keio University.
    4. Sorin M. S. Krammer & Addisu A. Lashitew & Jonathan P. Doh & Hari Bapuji, 2023. "Income inequality, social cohesion, and crime against businesses: Evidence from a global sample of firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(2), pages 385-400, March.
    5. Ummad Mazhar & Fahd Rehman, 2019. "Diehard or delicate? Violence and young firm performance in a developing country," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 54(4), pages 236-247, October.
    6. Islam,Asif Mohammed, 2016. "An exploration of the relationship between police presence, crime, and business in developing countries," Policy Research Working Paper Series 7560, The World Bank.
    7. Victor Motta, 2017. "The impact of crime on the performance of small and medium-sized enterprises," Tourism Economics, , vol. 23(5), pages 993-1010, August.
    8. Ajide Folorunsho M., 2019. "Institutional Quality, Economic Misery and Crime Rate in Nigeria," Economics and Business, Sciendo, vol. 33(1), pages 170-182, January.
    9. Yung Hyeock Lee & In Hyeock (Ian) Lee, 2022. "A regional analysis of crime heterogeneity and small- and medium-sized enterprise (SME) location choices: recent evidence from South Korea," Asian Business & Management, Palgrave Macmillan, vol. 21(4), pages 569-597, September.
    10. Ummad Mazhar, 2021. "Women empowerment and insecurity: firm-level evidence," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(1), pages 43-53, January.
    11. Ángeles Muñoz-Fernández & Rashmi Assudani & Imane Khayat, 2019. "Role of context on propensity of women to own business," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-19, December.
    12. Mazhar Ummad, 2019. "Terrorism and Firm Performance: Empirical Evidence from Pakistan," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(1), pages 1-17, January.
    13. Hoang Thanh Mai NGUYEN & Marie-Ange VEGANZONES-VAROUDAKIS, 2017. "Investment climate, outward orientation and manufacturing firm productivity: New empirical evidence," Working Papers 201717, CERDI.

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    More about this item

    Keywords

    Crime; Firms; Economic growth; Development; K40; L26; O10; O40; O50;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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