Does globalisation affect crime? theory and evidence

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 de...

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Main Authors: Ghosh, Arghya, Robertson, Peter E., Robitaille, Marie-Claire
Format: Article
Published: Wiley 2016
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Online Access:https://eprints.nottingham.ac.uk/47923/
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author Ghosh, Arghya
Robertson, Peter E.
Robitaille, Marie-Claire
author_facet Ghosh, Arghya
Robertson, Peter E.
Robitaille, Marie-Claire
author_sort Ghosh, Arghya
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-479232020-05-04T18:18:01Z https://eprints.nottingham.ac.uk/47923/ Does globalisation affect crime? theory and evidence Ghosh, Arghya Robertson, Peter E. Robitaille, Marie-Claire 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. Wiley 2016-10-04 Article PeerReviewed Ghosh, Arghya, Robertson, Peter E. and Robitaille, Marie-Claire (2016) Does globalisation affect crime? theory and evidence. The World Economy, 39 (10). pp. 1482-1513. ISSN 0378-5920 Expropriation; International trade; Globalization; Crime https://doi.org/10.1111/twec.12422 doi:10.1111/twec.12422 doi:10.1111/twec.12422
spellingShingle Expropriation; International trade; Globalization; Crime
Ghosh, Arghya
Robertson, Peter E.
Robitaille, Marie-Claire
Does globalisation affect crime? theory and evidence
title Does globalisation affect crime? theory and evidence
title_full Does globalisation affect crime? theory and evidence
title_fullStr Does globalisation affect crime? theory and evidence
title_full_unstemmed Does globalisation affect crime? theory and evidence
title_short Does globalisation affect crime? theory and evidence
title_sort does globalisation affect crime? theory and evidence
topic Expropriation; International trade; Globalization; Crime
url https://eprints.nottingham.ac.uk/47923/
https://eprints.nottingham.ac.uk/47923/
https://eprints.nottingham.ac.uk/47923/