Is Economic Growth Criminogenic for Developing Economies? Evidence from Firm Surveys
35 Pages Posted: 18 Dec 2011 Last revised: 14 May 2013
Date Written: May 14, 2013
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 we find that economic growth is negatively associated with crime. We also find that several macro-economic factors can weaken or strengthen the relationship between crime and economic growth. Results are affirmed using a smaller panel of firms for which data are available. The results are robust to various sensitivity checks.
Keywords: crime, firms, economic growth, development
JEL Classification: K42, O10, O40, O50
Suggested Citation: Suggested Citation