Does Crime Lower Growth? : Evidence from Colombia

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 r...

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Bibliographic Details
Main Authors: Cárdenas, Mauricio, Rozo, Sandra
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
GDP
TAX
TFP
WAR
WTO
Online Access:http://documents.worldbank.org/curated/en/752741468163462405/Does-crime-lower-growth-Evidence-from-Colombia
http://hdl.handle.net/10986/28005
id okr-10986-28005
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic 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
spellingShingle 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
Cárdenas, Mauricio
Rozo, Sandra
Does Crime Lower Growth? : Evidence from Colombia
geographic_facet Latin America & Caribbean
Colombia
relation Commission on Growth and Development Working Paper;No. 30
description 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.
format Working Paper
author Cárdenas, Mauricio
Rozo, Sandra
author_facet Cárdenas, Mauricio
Rozo, Sandra
author_sort Cárdenas, Mauricio
title Does Crime Lower Growth? : Evidence from Colombia
title_short Does Crime Lower Growth? : Evidence from Colombia
title_full Does Crime Lower Growth? : Evidence from Colombia
title_fullStr Does Crime Lower Growth? : Evidence from Colombia
title_full_unstemmed Does Crime Lower Growth? : Evidence from Colombia
title_sort does crime lower growth? : evidence from colombia
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/752741468163462405/Does-crime-lower-growth-Evidence-from-Colombia
http://hdl.handle.net/10986/28005
_version_ 1764465945486557184
spelling okr-10986-280052021-04-23T14:04:46Z Does Crime Lower Growth? : Evidence from Colombia Cárdenas, Mauricio Rozo, Sandra 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 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. 2017-08-28T16:23:48Z 2017-08-28T16:23:48Z 2008 Working Paper http://documents.worldbank.org/curated/en/752741468163462405/Does-crime-lower-growth-Evidence-from-Colombia http://hdl.handle.net/10986/28005 English en_US Commission on Growth and Development Working Paper;No. 30 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Latin America & Caribbean Colombia