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Police and Crime Against Firms in Developing Economies

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  • Islam, Asif

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 police and crime against firms, an important issue especially for developing economies. Using data for about 12,000 firms in 27 developing countries we find that increasing the police force has a negative effect on crime against firms. We also find that several macro-economic factors can weaken or strengthen this negative effect. The results are robust to various sensitivity checks.

Suggested Citation

  • Islam, Asif, 2011. "Police and Crime Against Firms in Developing Economies," MPRA Paper 36725, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36725
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    References listed on IDEAS

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    More about this item

    Keywords

    Crime; Firms; Development; Police Size;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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