Crime and Economic Growth: A Linear Dynamic Panel Data Model Approach

Tóm tắt

Recently, the impact of crime on economic growth has gained in importance in the academic literature. A large body of empirical studies affirms that crime has had a negative impact on economic growth. This research contributes to the debate by conducting an improved empirical study with the cross-country space framework. To do so, the author utilizes an updated longitudinal data of forty countries for the time span 1996-2016 first. Then, to deal with panel-level effects and potential biases, two-step GMM, fixed effects and random effects estimators are employed. The estimated results find no negative relationship between crime and economic
growth of the sample countries during the observation time span. This finding is contrary to the dominant pronouncement of the previous empirical works but supports for the conclusion of a numbers of studies. After interpretating the research findings, some implications are provided.