Crime and Growth Convergence: Evidence from Mexico

14 Pages Posted: 20 Apr 2016

See all articles by Ted Enamorado

Ted Enamorado

Princeton University, Department of Politics

Carlos Rodríguez-Castelán

World Bank

Luis Felipe López-Calva

World Bank

Date Written: December 1, 2013

Abstract

Scholars have often argued that crime deters growth, but the empirical literature assessing such effect is scarce. By exploiting cross-municipality income and crime data for Mexico -- a country that experienced a high increase in crime rates over the past decade -- this study circumvents two of the most common problems faced by researchers in this area. These are: (i) the lack of a homogenous, consistently comparable measure of crime and (ii) the small sample problem in the estimation. Combining income data from poverty maps, administrative records on crime and violence, and public expenditures data at the municipal level for Mexico (2005-2010), the analysis finds evidence indicating that drug-related crimes indeed deter growth. It also finds no evidence of a negative effect on growth from crimes unrelated to drug trafficking.

Keywords: Crime and Society, Public Sector Corruption & Anticorruption Measures, Achieving Shared Growth, International Terrorism & Counterterrorism, Corruption & Anticorruption Law

Suggested Citation

Enamorado, Ted and Rodriguez-Castelan, Carlos and Lopez-Calva, Luis Felipe, Crime and Growth Convergence: Evidence from Mexico (December 1, 2013). World Bank Policy Research Working Paper No. 6730, Available at SSRN: https://ssrn.com/abstract=2370150

Ted Enamorado

Princeton University, Department of Politics ( email )

Princeton, NJ
United States

Carlos Rodriguez-Castelan

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Luis Felipe Lopez-Calva

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

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