An Exploration of the Relationship between Police Presence, Crime, and Business in Developing Countries
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 polic...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/02/25885430/exploration-relationship-between-police-presence-crime-business-developing-countries http://hdl.handle.net/10986/23886 |
| Summary: | 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. |
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