Does Crime Lower Growth?

Many analysts consider that lack of security is a major obstacle to growth in Colombia. This paper identifies a structural downturn in economic growth-of nearly two percentage points per year-as a result of the increase in illicit crops and crime rates after 1980. A decline in total factor productivity has been the key channel linking crime and economic growth. Political upheavals and high levels of inequality and poverty motivated the adoption of a new constitution in 1991. The constitution mandated additional fiscal expenditures to curb social tensions. Major progress has been made in terms of public safety and, to a lesser extent, in the provision of health and education. However, long?run growth will continue to be constrained by inadequate transport infrastructure and low international trade volumes.

Bibliographic Details

Main Authors:	Cárdenas, Mauricio, Rozo, Sandra
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2008
Subjects:	ACCOUNTING, ANNUAL GROWTH, AVERAGE GROWTH, BILATERAL TRADE, BINDING CONSTRAINT, CAPITAL ACCUMULATION, CAPITAL FORMATION, CAPITAL INFLOWS, CAPITAL SHARE, CAPITAL STOCK, CENTRAL BANK, CHECKS, CIVIL CONFLICT, CLIMATE CHANGE, COMMERCIAL CODE, COMPANY LAW, COMPETITIVENESS, CONVENTIONAL WISDOM, COUNTRY CASE, COUNTRY RISK, COVARIANCE MATRIX, CURRENCY, CURRENCY APPRECIATION, DATA SETS, DEBT, DEBT CRISIS, DECENTRALIZATION, DECISION MAKING, DEPENDENT VARIABLE, DERIVATIVE, DETERMINANTS OF GROWTH, DEVELOPMENT PRACTITIONERS, DRUG TRAFFICKING, DRUGS, DUMMY VARIABLE, DUMMY VARIABLES, DYNAMIC ANALYSIS, ECONOMETRIC ANALYSIS, ECONOMETRICS, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC PROGRESS, ECONOMIC RESEARCH, ECONOMICS, EDUCATIONAL ATTAINMENT, EDUCATIONAL INDICATORS, ELASTICITY, EMPIRICAL WORK, EQUIPMENT, ESTIMATED COEFFICIENT, ESTIMATION METHOD, ESTIMATION RESULTS, EXCHANGE RATE, EXPLAINING CHANGES, EXPLANATORY VARIABLES, EXPROPRIATION RISK, EXTERNAL SHOCKS, EXTREME POVERTY, FACTOR ACCUMULATION, FACTORS OF PRODUCTION, FEDERAL RESERVE, FEDERAL RESERVE BANK, FEMALE LABOR FORCE, FINANCIAL CRISIS, FINANCIAL MARKETS, FISCAL DEFICITS, FISCAL POLICIES, FISCAL POLICY, FIXED EFFECTS, FREE TRADE, GDP, GDP PER CAPITA, GINI COEFFICIENT, GLOBAL DEVELOPMENT, GOVERNMENT EXPENDITURES, GOVERNMENT INTERVENTION, GROSS DOMESTIC PRODUCT, GROWTH DETERMINANTS, GROWTH LITERATURE, GROWTH MODEL, GROWTH PATH, GROWTH PERFORMANCE, GROWTH RATE, GROWTH RATES, HIGH TAXES, HOUSEHOLD SURVEYS, HUMAN CAPITAL, IMPORTANT POLICY, INCOME, INCOME TAX, INCREASES IN OUTPUT, INDUSTRIALIZED COUNTRIES, INFANT, INFANT MORTALITY, INFLATION, INFLATION RATE, INFLATION RATES, INFRASTRUCTURE INVESTMENT, INSTITUTIONAL DEVELOPMENT, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL TRADE, INVENTORY, INVESTMENT RATE, LABOR FORCE, LABOR INPUT, LEGAL STATUS, LEGISLATORS, LONG RUN, LOW BIRTH WEIGHT, MACROECONOMIC INSTABILITY, MACROECONOMIC PERFORMANCE, MILITARY EXPENDITURES, MONETARY FINANCING, MONETARY FUND, MORTALITY RATE, NATIONAL ACCOUNTS, NATIONAL GOVERNMENT, NATURAL RESOURCE, NEGATIVE EFFECT, NEGATIVE IMPACT, 0 HYPOTHESIS, OUTPUT GROWTH, OUTPUT RATIO, PENSIONS, PER CAPITA GROWTH, PERSONAL INCOME, PHYSICAL ASSETS, POLICY AREAS, POLICY DECISIONS, POLICY IMPLICATIONS, POLICY MAKERS, POLICY POINT OF VIEW, POLICY PROPOSALS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLICY RESPONSE, POLICY RESPONSES, POLITICAL OPPOSITION, POLITICAL PARTICIPATION, POLITICAL PARTIES, POLITICAL STABILITY, POPULAR SUPPORT, POPULATION CENSUSES, POPULATION DATA, POPULATION DENSITY, POVERTY RATES, POVERTY REDUCTION, PRIMARY EDUCATION, PRODUCTION FUNCTION, PUBLIC DEBT, PUBLIC EXPENDITURES, PUBLIC FINANCES, PUBLIC INVESTMENTS, PUBLIC SECTOR, PUBLIC SPENDING, RAPID GROWTH, RATE OF GROWTH, RATE OF POPULATION GROWTH, RATES OF POPULATION, RATES OF RETURN, RESPECT, RETURN, RETURNS, RISK OF EXPROPRIATION, RURAL AREAS, RURAL POPULATION, RURAL POPULATIONS, SECONDARY EDUCATION, SECONDARY ENROLLMENT, SECONDARY ENROLLMENT RATES, SOCIAL CONDITIONS, SOCIAL EXPENDITURES, SOCIAL INFRASTRUCTURE, SOCIAL PROGRAMS, SOCIAL PROGRESS, SOCIAL SECTORS, SOCIAL SECURITY, SOCIAL SERVICES, SOCIAL TENSIONS, SOCIAL UNREST, SPILLOVER, STANDARD DEVIATION, STATE OF KNOWLEDGE, STRUCTURAL BREAK, STRUCTURAL CHANGE, TAX, TAX EXEMPTIONS, TAX POLICY, TAX RATES, TAX REVENUES, TAX SYSTEM, TAXATION, TECHNOLOGICAL CHANGE, TERRORIST, TFP, TOTAL EXPENDITURE, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TRADE LIBERALIZATION, TRADE VOLUMES, TRANSACTION, TRANSACTION COSTS, TRANSPORTATION, UNDERESTIMATES, UNEMPLOYMENT, WAGES, WAR, WEALTH, WEALTH TAX, WEALTH TAXES, WORLD FINANCIAL MARKETS, WORLD HEALTH ORGANIZATION, WORLD INCOME DISTRIBUTION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/752741468163462405/Does-crime-lower-growth-Evidence-from-Colombia https://hdl.handle.net/10986/28005
Tags:	Add Tag No Tags, Be the first to tag this record!