An Exploration of the Relationship between Police Presence, Crime, and Business in Developing Countries

40 Pages Posted: 20 Apr 2016

See all articles by Asif Islam

Asif Islam

World Bank - Development Economics Group (DEC)

Date Written: February 8, 2016

Abstract

Economic theory predicts that a rise in police presence will reduce criminal activity. However several studies in the literature have found mixed results. This study adds to the literature by exploring the relationship between the size of the police force and crime experienced by firms. Using survey data for about 12,000 firms in a cross-section of 27 developing countries, the study finds that increasing the size of the police force is negatively associated with crime experienced by firms. The results are confirmed using a panel of firms for a subset of countries for which data are available. The study also finds that this negative relationship is stronger under certain macro-economic circumstances.

Keywords: Private Sector Economics, Private Sector Development Law, Marketing

Suggested Citation

Islam, Asif Mohammed, An Exploration of the Relationship between Police Presence, Crime, and Business in Developing Countries (February 8, 2016). World Bank Policy Research Working Paper No. 7560. Available at SSRN: https://ssrn.com/abstract=2729593

Asif Mohammed Islam (Contact Author)

World Bank - Development Economics Group (DEC) ( email )

1818 H Street N.W.
Washington, DC 20433
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
35
Abstract Views
275
PlumX Metrics