The Effect of Violent Crime on Sector-specific FDI in Latin America

Authors

Luisa Blanco, Pepperdine UniversityFollow
Isabel Ruiz, University of OxfordFollow
Rossitza Wooster, Portland State UniversityFollow

Sponsor

Luisa R. Blanco received support for this work from Pepperdine University Office of the Provost.

Published In

Oxford Development Studies

Document Type

Citation

Publication Date

10-1-2019

Abstract

This article looks at the impact of violent crime on FDI into Latin America and the Caribbean during the 1996–2010 period. FDI is disaggregated into primary, secondary and tertiary sectors and three variables related to violent crime are used: homicides, crime victimization and organized crime. Controlling for institutions and the traditional determinants of FDI, we find that the impact of crime on FDI depends on the sector and types of crime considered. Higher homicide rates are associated with less FDI in the secondary sector while organized crime reduces tertiary sector FDI. Crime victimization has a robust significant negative impact on the tertiary sector and in some estimations of the secondary sector. Crime has no impact on primary sector FDI. Our study highlights the need to continue efforts to decrease crime as we show in our analysis that crime has a negative effect on FDI in the secondary and tertiary sector.

Description

© 2019 Oxford Department of International Development

Locate the Document

https://doi.org/10.1080/13600818.2019.1611754

DOI

10.1080/13600818.2019.1611754

Persistent Identifier

https://archives.pdx.edu/ds/psu/30937

Citation Details

Blanco, L. R., Ruiz, I., & Wooster, R. B. (2019). The effect of violent crime on sector-specific FDI in Latin America. Oxford Development Studies, 1-15.