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Results for international trade and crime

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Author: Ghosh, Arghya

Title: Crime, Factor Abundance and Globalization: Evidence From Cross-Country Panel Data

Summary: Popular media and anecdotal evidence suggests that aspects of globalization, particularly trade liberalization, are associated with increasing social tension such as higher crime rates. Moreover recent theoretical models have suggested that trade liberalization might reduce crime, but the effect differs for labor abundant and capital abundant countries. Though there is substantial evidence that crime rates differ across countries the proposition that trade liberalization in itself has an impact on crime has not been tested in the literature. We test this theory and find that a higher degree of trade liberalization, as measured by both higher openness and lower import duty rates, tend to increase burglaries and thefts in labor abundant countries. In contrast, in capital abundant countries, trade liberalization has either a small negative effect or no effect on crime rates.

Details: Adelaide: University of Western Australia, School of Business, 2011. 35p.

Source: Internet Resource: Accessed May 3, 2012 at: http://economics.adelaide.edu.au/events/ATW2011/Robertson.pdf

Year: 2011

Country: International

URL: http://economics.adelaide.edu.au/events/ATW2011/Robertson.pdf

Shelf Number: 125147

Keywords:
Business and Crime
Economics and Crime
Globalization and Crime
International Trade and Crime