Publication: Does Crime Lower Growth?: Evidence from Colombia
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
“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.”