Is Crime a Barrier Against Financial Development?

Abhyankar, Atharva (2022): Is Crime a Barrier Against Financial Development?

Abstract

Using cross-country data, this paper analyzes the relationship between crime rates and their effects on financial development at the national level. To do this, I take several financial variables and compare them with three main crime variables- homicide, fraud, and corruption- and plot significant correlations to analyze trends. The results show that while fraud and corruption have no adverse effects on financial development variables, they are positively correlated with several of them, and intentional homicide is quite detrimental to countries’ financial development.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial development; crime; cross-country data
• Subjects: G - Financial Economics > G1 - General Financial Markets > G10 - General; G - Financial Economics > G2 - Financial Institutions and Services > G20 - General; K - Law and Economics > K0 - General > K00 - General

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