IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01972853.html
   My bibliography  Save this paper

Does more crime mean fewer jobs and less economic growth?

Author

Listed:
  • Claudio Detotto

    (LISA - Lieux, Identités, eSpaces, Activités - UPP - Université Pascal Paoli - CNRS - Centre National de la Recherche Scientifique)

  • Manuela Pulina

    (UNISS - Università degli Studi di Sassari = University of Sassari [Sassari])

Abstract

This paper employs an Autoregressive Distributed Lags approach to investigate how a set of economic variables and a deterrence variable affect criminal activity. Furthermore, it highlights the extent to which crime is detrimental to economic activity. The case study is Italy for the time span 1970 up to 2004. A Granger causality test is implemented to establish temporal interrelationships. The empirical evidence shows that the lack of deterrence positively affects each type of crime and especially thefts. All crime typologies have a negative effect on legal economic activity, reducing the employment rate. Furthermore, homicides, robbery, extortion and kidnapping have a crowding-out effect on economic growth. Copyright Springer Science+Business Media, LLC 2013
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Claudio Detotto & Manuela Pulina, 2013. "Does more crime mean fewer jobs and less economic growth?," Post-Print hal-01972853, HAL.
    • Handle: RePEc:hal:journl:hal-01972853
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Scorcu, Antonello E. & Cellini, Roberto, 1998. "Economic activity and crime in the long run: an empirical investigation on aggregate data from Italy, 1951-1994," International Review of Law and Economics, Elsevier, vol. 18(3), pages 279-292, September.
    2. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    3. C. Detotto & E. Otranto, 2010. "Cycles in Crime and Economy: Leading, Lagging and Coincident Behaviors," Working Paper CRENoS 201023, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    4. Mauricio Cárdenas & Sandra Rozo, 2008. "Does Crime Lower Growth?," World Bank Publications - Books, The World Bank Group, number 28005.
    5. Paolo Buonanno, 2003. "The Socioeconomic Determinants of Crime. A Review of the Literature," Working Papers 63, University of Milano-Bicocca, Department of Economics, revised Nov 2003.
    6. Belton M. Fleisher, 1963. "The Effect of Unemployment on Juvenile Delinquency," Journal of Political Economy, University of Chicago Press, vol. 71(6), pages 543-543.
    7. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    8. Boris Podobnik & Jia Shao & Djuro Njavro & Plamen Ivanov & H. Stanley, 2008. "Influence of corruption on economic growth rate and foreign investment," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 63(4), pages 547-550, June.
    9. Walter Enders & Todd Sandler & Gerald F. Parise, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Wiley Blackwell, vol. 45(4), pages 531-554, November.
    10. Claudio Detotto & Edoardo Otranto, 2010. "Does Crime Affect Economic Growth?," Kyklos, Wiley Blackwell, vol. 63(3), pages 330-345, August.
    11. Eckstein, Zvi & Tsiddon, Daniel, 2004. "Macroeconomic consequences of terror: theory and the case of Israel," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 971-1002, July.
    12. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    13. Gregory, Allan W & Hansen, Bruce E, 1996. "Tests for Cointegration in Models with Regime and Trend Shifts," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 555-560, August.
    14. Shyh-Wei Chen, 2009. "Investigating causality among unemployment, income and crime in Taiwan: evidence from the bounds test approach," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(1), pages 115-125.
    15. Paresh Kumar Narayan & Russell Smyth, 2004. "Crime rates, male youth unemployment and real income in Australia: evidence from Granger causality tests," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2079-2095.
    16. Mo, Pak Hung, 2001. "Corruption and Economic Growth," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 66-79, March.
    17. repec:bla:kyklos:v:49:y:1996:i:3:p:331-52 is not listed on IDEAS
    18. Muzafar Shah Habibullah & A.H. Baharom, 2009. "Crime and economic conditions in Malaysia," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(11), pages 1071-1081, September.
    19. Gregory, Allan W. & Hansen, Bruce E., 1996. "Residual-based tests for cointegration in models with regime shifts," Journal of Econometrics, Elsevier, vol. 70(1), pages 99-126, January.
    20. Baharom, A.H. & Habibullah, M.S., 2008. "Crime and Income Inequality: The Case of Malaysia," MPRA Paper 11871, University Library of Munich, Germany.
    21. repec:bla:kyklos:v:45:y:1992:i:4:p:531-54 is not listed on IDEAS
    22. Luciano Mauro & Gaetano Carmeci, 2007. "A Poverty Trap of Crime and Unemployment," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 450-462, August.
    23. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ms. Concha Verdugo Yepes & Mr. Peter L. Pedroni & Xingwei Hu, 2015. "Crime and the Economy in Mexican States: Heterogeneous Panel Estimates (1993-2012)," IMF Working Papers 2015/121, International Monetary Fund.
    2. Marcus Box & Karl Gratzer & Xiang Lin, 2020. "Destructive entrepreneurship in the small business sector: bankruptcy fraud in Sweden, 1830–2010," Small Business Economics, Springer, vol. 54(2), pages 437-457, February.
    3. Oliviero A. Carboni & Claudio Detotto, 2016. "The economic consequences of crime in Italy," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(1), pages 122-140, January.
    4. Umbach, Tim, 2020. "A Vicious Cycle of Regional Unemployment and Crime? - Evidence from German Counties," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224611, Verein für Socialpolitik / German Economic Association.
    5. Bianca Biagi & Claudio Detotto, 2020. "Crime as Tourism Externality," Regional Studies, Taylor & Francis Journals, vol. 48(4), pages 693-709, July.
    6. Adenuga Fabian ADEKOYA & SNor Azam Abdul RAZAK, 2016. "Effect Of Crime On Poverty In Nigeria," Romanian Economic Business Review, Romanian-American University, vol. 11(2), pages 29-42, June.
    7. Kumar, Surender, 2013. "Crime and Economic Growth: Evidence from India," MPRA Paper 48794, University Library of Munich, Germany.
    8. Adekoya Adenuga Fabian & Razak Nor Azam Abdul, 2016. "The Link Between Economic Growth, Crime and Deterrence Measures in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 26(4), pages 24-40, November.
    9. Alexander, Adam C. & Chen, Weiyu & Ward, Kenneth D., 2018. "Is intelligence associated with mortality from lethal force by law enforcement?," Intelligence, Elsevier, vol. 70(C), pages 30-35.
    10. Roberto Coronado & Eduardo Saucedo, 2019. "Drug-related violence in Mexico and its effects on employment," Empirical Economics, Springer, vol. 57(2), pages 653-681, August.
    11. Giacomo Di Gennaro, 2018. "La mimetizzazione dell'attività estorsiva e i diversi tipi di autorità extralegale nei mercati illegali e legali," Moneta e Credito, Economia civile, vol. 71(284), pages 311-335.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adekoya Adenuga Fabian & Abdul Razak Nor Azam, 2017. "The Dynamic Relationship between Crime and Economic Growth in Nigeria," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 53(1), pages 47-64, March.
    2. Halicioglu, Ferda & Andrés, Antonio R. & Yamamura, Eiji, 2012. "Modeling crime in Japan," Economic Modelling, Elsevier, vol. 29(5), pages 1640-1645.
    3. Claudio Detotto & Edoardo Otranto, 2010. "Does Crime Affect Economic Growth?," Kyklos, Wiley Blackwell, vol. 63(3), pages 330-345, August.
    4. Farooq, Abdul & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2013. "Does corruption impede economic growth in Pakistan?," Economic Modelling, Elsevier, vol. 35(C), pages 622-633.
    5. Awais Anwar & Noman Arshed & Sofia Anwar, 2017. "Socio-economic Determinants of Crime: An Empirical Study of Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 312-322.
    6. Rosetta Lombardo & Marianna Falcone, 2011. "Crime And Economic Performance. A Cluster Analysis Of Panel Data On Italy'S Nuts 3 Regions," Working Papers 201112, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    7. Nikolaos Dritsakis & Alexandros Gkanas, 2009. "The effect of socio-economic determinants on crime rates: An empirical research in the case of Greece with cointegration analysis," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 2(2), pages 51-64, December.
    8. Francesca Iorio & Stefano Fachin, 2014. "Savings and investments in the OECD: a panel cointegration study with a new bootstrap test," Empirical Economics, Springer, vol. 46(4), pages 1271-1300, June.
    9. Brittle, Shane, 2009. "Ricardian Equivalence and the Efficacy of Fiscal Policy in Australia," Economics Working Papers wp09-10, School of Economics, University of Wollongong, NSW, Australia.
    10. Marcus Box & Karl Gratzer & Xiang Lin, 2020. "Destructive entrepreneurship in the small business sector: bankruptcy fraud in Sweden, 1830–2010," Small Business Economics, Springer, vol. 54(2), pages 437-457, February.
    11. Kanjilal, Kakali & Ghosh, Sajal, 2013. "Environmental Kuznet’s curve for India: Evidence from tests for cointegration with unknown structuralbreaks," Energy Policy, Elsevier, vol. 56(C), pages 509-515.
    12. Diana L Carreon-Guzman & Jorge Garza-Rodriguez & David R Garza-Turrubiates & Ricardo A Gonzalez-Camargo & Eugenio Lozano-Castillo, 2015. "The effects of crime on the Mexican economy: a vector error correction model," Economics Bulletin, AccessEcon, vol. 35(2), pages 959-967.
    13. Senay ACIKGOZ & Anil AKCAGLAYAN, 2014. "Turkiye’de Cari Islemler Aciginin Surdurulebilirligi," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 14(1), pages 83-97.
    14. Adenuga Fabian ADEKOYA & SNor Azam Abdul RAZAK, 2016. "Effect Of Crime On Poverty In Nigeria," Romanian Economic Business Review, Romanian-American University, vol. 11(2), pages 29-42, June.
    15. Boubaker, Sabri & Jouini, Jamel & Lahiani, Amine, 2016. "Financial contagion between the US and selected developed and emerging countries: The case of the subprime crisis," The Quarterly Review of Economics and Finance, Elsevier, vol. 61(C), pages 14-28.
    16. Tang, Chor Foon, 2011. "Tourism, real output and real effective exchange rate in Malaysia: a view from rolling sub-samples," MPRA Paper 29379, University Library of Munich, Germany.
    17. Li, Sisi & Khan, Sufyan Ullah & Yao, Yao & Chen, George S. & Zhang, Lin & Salim, Ruhul & Huo, Jiaying, 2022. "Estimating the long-run crude oil demand function of China: Some new evidence and policy options," Energy Policy, Elsevier, vol. 170(C).
    18. Götz, L. & von Cramon-Taubadel, S., 2008. "Asymmetric Price Transmission in the Israeli Citrus Export Sector in the Aftermath of Liberalization," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    19. Oliviero A. Carboni & Claudio Detotto, 2016. "The economic consequences of crime in Italy," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(1), pages 122-140, January.
    20. Charles O. Manasseh & Timothy E. Mathew & Jonathan E. Ogbuabor, 2017. "Investigating the Nexus between Institutional Quality and Stock Market Development in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach," African Development Review, African Development Bank, vol. 29(2), pages 272-292, June.

    More about this item

    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01972853. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.