An exploration of the relationship between police presence, crime and firms in developing countries

Asif Islam

Development Policy Review, 2016, vol. 34, issue 5, 691-719

Abstract: type="main" xml:id="dpr12169-abs-0001">

Economic theory predicts that a rise in police presence will reduce criminal activity. However several studies in this field have found mixed results. This study adds to the literature by exploring the relationship between the size of the police force and crime experienced by firms. Using survey data for about 12,000 firms in a cross-section of 27 developing countries it is found that increasing the size of the police force is negatively associated with crime experienced by firms. Results are confirmed using a panel of firms for a subset of countries for which data are available. It is also found that this negative relationship is stronger under certain macroeconomic circumstances.

Date: 2016
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