Does globalisation affect crime? theory and evidence

Arghya Ghosh, Peter E. Robertson, Marie-Claire Robitaille

Research output: Journal PublicationArticlepeer-review

2 Citations (Scopus)
18 Downloads (Pure)

Abstract

Globalization skeptics argue that trade liberalization has high social costs, including an increase in expropriative behavior such as civil-conflict, coercion of labor and crime. We show that a theoretical relationship between trade and expropriation exists, but the sign differs for developed and developing economies. We verify this empirically using data on crime rates. Specifically we find trade liberalization,as measured by both higher openness and lower import duty rates, tends to increase burglaries and theft in very labor abundant countries. For other countries, however,we find that trade liberalization has either a small negative effect on crime,or no effect, depending on the country’s capital abundance.
Original languageEnglish
Pages (from-to)1482-1513
JournalThe World Economy
Volume39
Issue number10
Early online date18 Jul 2016
DOIs
Publication statusPublished - 4 Oct 2016

Keywords

  • Crime
  • Expropriation
  • Globalization
  • International trade

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