Is Economic Growth Criminogenic for Firms In Developing Economies?
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 which is an important issue especially for developing economies. Using data for about 12,000 firms in 27 developing countries we find that economic growth has a negative effect on crime. We also find that several macro-economic factors can weaken or strengthen the relationship between crime and economic growth. The results are robust to various sensitivity checks.
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