Publication: Does Crime Lower Growth?: Evidence from Colombia
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Date
2008
ISSN
Published
2008
Author(s)
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.
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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.”