Publication: Does Crime Lower Growth?: Evidence from Colombia
Date
2008
ISSN
Published
2008
Author(s)
Cárdenas, Mauricio
Rozo, Sandra
Abstract
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.
Link to Data Set
Citation
“Cárdenas, Mauricio; Rozo, Sandra. 2008. Does Crime Lower Growth?: Evidence from Colombia. Commission on Growth and Development Working Paper;No. 30. © World Bank, Washington, DC. http://hdl.handle.net/10986/28005 License: CC BY 3.0 IGO.”