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

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  • Asif Islam

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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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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Grabrucker, Katharina & Grimm, Michael, 2016. "Does Crime Deter South Africans from Self-Employment?," IZA Discussion Papers 10280, Institute for the Study of Labor (IZA).
    2. 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.
    3. repec:eee:jcecon:v:46:y:2018:i:2:p:413-435 is not listed on IDEAS
    4. Mai Nguyen & Marie-Ange Veganzones-Varoudakis, 2017. "Investment climate, outward orientation and manufacturing firm productivity: New empirical evidence," Working Papers halshs-01618733, HAL.
    5. 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.

    More about this item

    Keywords

    Crime; Firms; Economic growth; Development; K40; L26; O10; O40; O50;

    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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