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Is Crime a Barrier Against Financial Development?

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  • Abhyankar, Atharva

Abstract

Using cross-country data, this paper analyzes the relationship between crime rates and their effects on financial development at the national level. To do this, I take several financial variables and compare them with three main crime variables- homicide, fraud, and corruption- and plot significant correlations to analyze trends. The results show that while fraud and corruption have no adverse effects on financial development variables, they are positively correlated with several of them, and intentional homicide is quite detrimental to countries’ financial development.

Suggested Citation

  • Abhyankar, Atharva, 2022. "Is Crime a Barrier Against Financial Development?," MPRA Paper 114653, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114653
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    File URL: https://mpra.ub.uni-muenchen.de/114653/1/MPRA_paper_114653.pdf
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    References listed on IDEAS

    as
    1. Emilia Bonaccorsi di Patti, 2009. "Weak institutions and credit availability: the impact of crime on bank loans," Questioni di Economia e Finanza (Occasional Papers) 52, Bank of Italy, Economic Research and International Relations Area.
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    More about this item

    Keywords

    Financial development; crime; cross-country data;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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