IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v38y2026i2p251-270.html

Effects of Theft on Investment Decisions of Agricultural Enterprises in Cameroon

Author

Listed:
  • Benjamin Fomba Kamga
  • Gilchrist Bessoum Keedi

Abstract

This paper analyses the effects of theft on the investment decisions of agricultural enterprises in Cameroon. The data are drawn from a survey conducted with 484 agricultural enterprises. Two methodological approaches are employed: First, a multivariate probit model that simultaneously addresses potential endogeneity and unobserved heterogeneity across different investment decisions; second, a recursive bivariate probit model applied to each investment decision, incorporating theft as an endogenous variable. The results reveal a positive and significant relationship between theft and the investment decisions of agricultural enterprises, highlighting the substantial influence of this factor on their economic behaviour.

Suggested Citation

  • Benjamin Fomba Kamga & Gilchrist Bessoum Keedi, 2026. "Effects of Theft on Investment Decisions of Agricultural Enterprises in Cameroon," Journal of International Development, John Wiley & Sons, Ltd., vol. 38(2), pages 251-270, March.
    • Handle: RePEc:wly:jintdv:v:38:y:2026:i:2:p:251-270
    DOI: 10.1002/jid.70040
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/jid.70040
    Download Restriction: no
    File URL: https://libkey.io/10.1002/jid.70040?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. Grote, Ulrike & Neubacher, Frank, 2016. "Rural Crime in Developing Countries: Theoretical Framework, Empirical Findings, Research Needs," Working Papers 233668, University of Bonn, Center for Development Research (ZEF).
    2. 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.
    3. Laura Schechter, 2007. "Theft, Gift-Giving, and Trustworthiness: Honesty Is Its Own Reward in Rural Paraguay," American Economic Review, American Economic Association, vol. 97(5), pages 1560-1582, December.
    4. Kebede, Bereket & Zizzo, Daniel John, 2015. "Social Preferences and Agricultural Innovation: An Experimental Case Study from Ethiopia," World Development, Elsevier, vol. 67(C), pages 267-280.
    5. BenYishay, Ariel & Pearlman, Sarah, 2014. "Crime and Microenterprise Growth: Evidence from Mexico," World Development, Elsevier, vol. 56(C), pages 139-152.
    6. Grote, Ulrike & Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Neubacher, Frank, 2024. "Determinants and impacts of rural crime victimization: Evidence from a case study in Southeast Asia," Journal of Asian Economics, Elsevier, vol. 91(C).
    7. Fe, Hao & Sanfelice, Viviane, 2022. "How bad is crime for business? Evidence from consumer behavior," Journal of Urban Economics, Elsevier, vol. 129(C).
    8. Abadie, Alberto & Dermisi, Sofia, 2008. "Is terrorism eroding agglomeration economies in Central Business Districts? Lessons from the office real estate market in downtown Chicago," Journal of Urban Economics, Elsevier, vol. 64(2), pages 451-463, September.
    9. Preeya S. Mohan, 2021. "Violent Crime and Firm Performance: Evidence from the Caribbean," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 28(2), pages 309-327, May.
    10. Dyer, Julian, 2023. "The fruits (and vegetables) of crime: Protection from theft and agricultural development," Journal of Development Economics, Elsevier, vol. 163(C).
    11. Li, Chuhui & Poskitt, D.S. & Zhao, Xueyan, 2019. "The bivariate probit model, maximum likelihood estimation, pseudo true parameters and partial identification," Journal of Econometrics, Elsevier, vol. 209(1), pages 94-113.
    12. André Filipe Guedes Almeida & Gabriel Caldas Montes, 2020. "Effects of crime and violence on business confidence: evidence from Rio de Janeiro," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(7), pages 1669-1688, May.
    13. Grote, Ulrike & Mager, Gregor & Faße, Anja & Neubacher, Frank & Kissoly, Luitfred, 2025. "Evidence and determinants of rural crime victimization in Tanzania," World Development, Elsevier, vol. 187(C).
    14. Krkoska Libor & Robeck Katrin, 2009. "Crime, Business Conduct and Investment Decisions: Enterprise Survey Evidence from 34 Countries in Europe and Asia," Review of Law & Economics, De Gruyter, vol. 5(1), pages 493-516, September.
    15. 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.
    16. Joseph Mawejje & Rachel K. Sebudde, 2019. "Constraints or Complaints? Business Climate and Firm Performance Perceptions in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2513-2525, December.
    17. Grabrucker, Katharina & Grimm, Michael, 2018. "Does crime deter South Africans from self-employment?," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 413-435.
    18. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LLC, vol. 3(3), pages 278-294, September.
    19. Michael C. Lens & Rachel Meltzer, 2016. "Is Crime Bad For Business? Crime And Commercial Property Values In New York City," Journal of Regional Science, Wiley Blackwell, vol. 56(3), pages 442-470, June.
    20. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
    21. repec:gig:chaktu:v:38:y:2009:i:4:p:117-143 is not listed on IDEAS
    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. 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.
    2. 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.
    3. Drydakis, Nick, 2024. "Business disruptions due to social vulnerability and criminal activities in urban areas," Journal of Criminal Justice, Elsevier, vol. 95(C).
    4. Grote, Ulrike & Mager, Gregor & Faße, Anja & Neubacher, Frank & Kissoly, Luitfred, 2025. "Evidence and determinants of rural crime victimization in Tanzania," World Development, Elsevier, vol. 187(C).
    5. Grabrucker, Katharina & Grimm, Michael, 2018. "Does crime deter South Africans from self-employment?," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 413-435.
    6. Folorunsho M. Ajide & Olasupo I. Bankefa & Rufus A. Ajisafe, 2018. "Criminal Activities and Firms’ Market Power: Evidence from Nigerian Banking Industry," Global Business Review, International Management Institute, vol. 19(5), pages 1207-1223, October.
    7. André Filipe Guedes Almeida & Gabriel Caldas Montes, 2020. "Effects of crime and violence on business confidence: evidence from Rio de Janeiro," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(7), pages 1669-1688, May.
    8. Nelson A. Ochieng & Ulrike Grote, 2025. "Agricultural crime victimization and food security outcomes among smallholder farmers in rural Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 17(3), pages 703-720, June.
    9. 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.
    10. Miklian, Jason & van Dorp, Mark & Katsos, John, 2025. "Unlocking the peace premium: an evidence-based review of the potentials and pitfalls of private sector finance for conflict transformation," LSE Research Online Documents on Economics 138551, London School of Economics and Political Science, LSE Library.
    11. Di Novi, Cinzia & Martini, Gianmaria & Sturaro, Caterina, 2023. "The impact of informal and formal care disruption on older adults’ psychological distress during the COVID-19 pandemic in UK," Economics & Human Biology, Elsevier, vol. 49(C).
    12. Awaworyi Churchill, Sefa & Hayward, Mathew & Smyth, Russell & Trinh, Trong-Anh, 2023. "Crime, community social capital and entrepreneurship: Evidence from Australian communities," Journal of Business Venturing, Elsevier, vol. 38(2).
    13. Ajide Folorunsho M., 2019. "Institutional Quality, Economic Misery and Crime Rate in Nigeria," Economics and Business, Sciendo, vol. 33(1), pages 170-182, January.
    14. Víctor Hugo Torres Preciado, 2017. "Desempleo y criminalidad en los estados de la frontera norte de México: un enfoque espacial bayesiano de vectores auto-regresivos. (Unemployment and crime in the Northern-border states of Mexico: a spatial-Bayesian autoregressive vector approach)," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 25-58, May.
    15. Walter Heredia & Antonio Lecuna & Jorge Heredia & Cristian Geldes & Alejandro Flores, 2023. "Effect of corruption and crime on growth-oriented informal firms," International Entrepreneurship and Management Journal, Springer, vol. 19(4), pages 2065-2091, December.
    16. M.A. Véganzonès-Varoudakis & H. T. M. Nguyen, 2018. "Investment climate, outward orientation and manufacturing firm productivity: new empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 50(53), pages 5766-5794, November.
    17. Donovan, Stuart & de Graaff, Thomas & de Groot, Henri L.F. & Schiff, Aaron, 2024. "An urban overhead? Crime, agglomeration, and amenity," Journal of Housing Economics, Elsevier, vol. 64(C).
    18. Allen, W. David, 2009. "Interview effects in the reporting of domestic violence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 288-300, March.
    19. Grote, Ulrike & Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Neubacher, Frank, 2024. "Determinants and impacts of rural crime victimization: Evidence from a case study in Southeast Asia," Journal of Asian Economics, Elsevier, vol. 91(C).
    20. Brenna, Elenka & Giammanco, Maria Daniela, 2024. "The use of voluntary health insurance in the access to specialist care: Evidence from the Italian NHS," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).

    More about this item

    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:wly:jintdv:v:38:y:2026:i:2:p:251-270. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    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.