IDEAS home Printed from https://ideas.repec.org/p/ris/nepswp/2011_007.html
   My bibliography  Save this paper

Gov-Aargh-Nance – “even Criminals Need Law And Order”

Author

Listed:
  • Olaf J. de Groot

    (DIW Berlin)

  • Matthew D. Rablen

    (Brunel University)

  • Anja Shortland

    (Brunel University)

Abstract

We present a theoretical model postulating that the relationship between crime and governance is “hump-shaped”, rather than linearly decreasing, when criminals need access to markets. State collapse, violent conflict and a lack of infrastructure are not conducive for the establishment of any business, legal or illegal. At the bottom end of the spectrum, therefore, criminal gangs benefit from improved governance, especially when this is delivered informally. With significant improvements in formal governance criminal activities decline. We use data from the International Maritime Bureau to create a new dataset on piracy and find strong and consistent support for this non-linear relationship.

Suggested Citation

  • Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2011. "Gov-Aargh-Nance ‚Äì ‚Äúeven Criminals Need Law And Order‚Äù," NEPS Working Papers 7/2011, Network of European Peace Scientists.
  • Handle: RePEc:ris:nepswp:2011_007
    as

    Download full text from publisher

    File URL: http://www.europeanpeacescientists.org/7_2011.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Berger, Helge & Nitsch, Volker, 2008. "Gotcha! A Profile of Smuggling in International Trade," Conference papers 331735, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Peter T. Leeson, 2009. "The Laws of Lawlessness," The Journal of Legal Studies, University of Chicago Press, vol. 38(2), pages 471-503, June.
    3. Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2011. "Gov-aargh-nance - "even criminals need law and order"," CEDI Discussion Paper Series 11-01, Centre for Economic Development and Institutions(CEDI), Brunel University.
    4. Eric Friedman & Simon Johnson & Daniel Kaufmann & Pablo Zoido-Lobaton, 2007. "Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 Countries," Palgrave Macmillan Books, in: Erik Berglöf & Gérard Roland (ed.), The Economics of Transition, chapter 9, pages 298-334, Palgrave Macmillan.
    5. Shortland, Anja & Vothknecht, Marc, 2011. "Combating “maritime terrorism” off the coast of Somalia," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 133-151.
    6. Avinash Dixit, 2003. "On Modes of Economic Governance," Econometrica, Econometric Society, vol. 71(2), pages 449-481, March.
    7. Raymond Fisman & Shang-Jin Wei, 2009. "The Smuggling of Art, and the Art of Smuggling: Uncovering the Illicit Trade in Cultural Property and Antiques," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 82-96, July.
    8. Anja Shortland, 2010. "The Business of Piracy in Somalia," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 6(23), pages 182-186.
    9. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "Governance Matters VI: Aggregate and Individual Governance Indicators, 1996-2006," Policy Research Working Paper Series 4280, The World Bank.
    10. Loayza, Norman V., 1996. "The economics of the informal sector: a simple model and some empirical evidence from Latin America," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 45(1), pages 129-162, December.
    11. Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420, September.
    12. Leeson, Peter T., 2007. "Better off stateless: Somalia before and after government collapse," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 689-710, December.
    13. Oriana Bandiera, 2003. "Land Reform, the Market for Protection, and the Origins of the Sicilian Mafia: Theory and Evidence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 19(1), pages 218-244, April.
    14. Leeson Peter T. & Williamson Claudia R., 2009. "Anarchy and Development: An Application of the Theory of Second Best," The Law and Development Review, De Gruyter, vol. 2(1), pages 77-96, July.
    15. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-1288, December.
    16. Soares, Rodrigo R, 2004. "Crime Reporting as a Measure of Institutional Development," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 851-871, July.
    17. Varese, Federico, 2001. "The Russian Mafia: Private Protection in a New Market Economy," OUP Catalogue, Oxford University Press, number 9780198297369, Decembrie.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jablonski, Ryan S. & Oliver, Steven & Hastings, Justin V., 2017. "The Tortuga disease: the perverse effects of illicit foreign capital," LSE Research Online Documents on Economics 67105, London School of Economics and Political Science, LSE Library.
    2. Ursula E. Daxecker & Brandon C. Prins, 2015. "Searching for Sanctuary: Government Power and the Location of Maritime Piracy," International Interactions, Taylor & Francis Journals, vol. 41(4), pages 699-717, August.

    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. Olaf J. de Groot & Matthew D. Rablen & Anja Shortland, 2011. "Gov-aargh-nance: "Even Criminals Need Law and Order"," Economics of Security Working Paper Series 46, DIW Berlin, German Institute for Economic Research.
    2. Olaf J. de Groot & Anja Shortland, 2010. "Gov-arrrgh-nance: Jolly Rogers and Dodgy Rulers," Discussion Papers of DIW Berlin 1063, DIW Berlin, German Institute for Economic Research.
    3. Shortland Anja & Percy Sarah, 2013. "Governance, Naval Intervention and Piracy in Somalia," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(2), pages 275-283, August.
    4. Anja Shortland, 2010. "The Business of Piracy in Somalia," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 6(23), pages 182-186.
    5. Anja Shortland & Sarah Percy, 2012. "Counter-Piracy in Somalia: Help or Hindrance?," CEDI Discussion Paper Series 12-03, Centre for Economic Development and Institutions(CEDI), Brunel University.
    6. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055, September.
    7. Anja Shortland & Federico Varese, 2012. "The Business of Pirate Protection," Economics of Security Working Paper Series 75, DIW Berlin, German Institute for Economic Research.
    8. Andreas Buehn & Mohammad Reza Farzanegan, 2012. "Smuggling around the world: evidence from a structural equation model," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 3047-3064, August.
    9. Elisa Operti, 2018. "Tough on criminal wealth? Exploring the link between organized crime’s asset confiscation and regional entrepreneurship," Small Business Economics, Springer, vol. 51(2), pages 321-335, August.
    10. Skarbek, David, 2016. "Covenants without the Sword? Comparing Prison Self-Governance Globally," American Political Science Review, Cambridge University Press, vol. 110(4), pages 845-862, November.
    11. Farzanegan, Mohammad Reza, 2009. "Illegal trade in the Iranian economy: Evidence from a structural model," European Journal of Political Economy, Elsevier, vol. 25(4), pages 489-507, December.
    12. Christian Schubert & Leonhard K. Lades, 2014. "Fighting maritime piracy: three lessons from pompeius magnus," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(5), pages 481-497, October.
    13. Avidit Acharya & Robin Harding & J. Andrew Harris, 2020. "Security in the absence of a state: Traditional authority, livestock trading, and maritime piracy in northern Somalia," Journal of Theoretical Politics, , vol. 32(4), pages 497-537, October.
    14. Andrew Young, 2015. "From Caesar to Tacitus: changes in early Germanic governance circa 50 BC-50 AD," Public Choice, Springer, vol. 164(3), pages 357-378, September.
    15. Xu Guangdong, 2013. "Property Rights, Law, and Economic Development," The Law and Development Review, De Gruyter, vol. 6(1), pages 117-142, July.
    16. Peter J. Boettke & Rosolino A. Candela, 2020. "Productive specialization, peaceful cooperation and the problem of the predatory state: lessons from comparative historical political economy," Public Choice, Springer, vol. 182(3), pages 331-352, March.
    17. Ennio E. Piano, 2019. "State capacity and public choice: a critical survey," Public Choice, Springer, vol. 178(1), pages 289-309, January.
    18. Skarbek, David, 2011. "Governance and Prison Gangs," American Political Science Review, Cambridge University Press, vol. 105(4), pages 702-716, November.
    19. Edwards, Griffin & Robinson, Joshua J., 2019. "You gotta fight for your right? Publicly assigned but privately enforced property rights," International Review of Law and Economics, Elsevier, vol. 59(C), pages 31-39.
    20. Boettke, Peter J. & Coyne, Christopher J. & Leeson, Peter T., 2013. "Comparative historical political economy," Journal of Institutional Economics, Cambridge University Press, vol. 9(3), pages 285-301, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

    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:ris:nepswp:2011_007. 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: Vincenzo Bove The email address of this maintainer does not seem to be valid anymore. Please ask Vincenzo Bove to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/nepssea.html .

    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.