THE IMPACT OF INTELLIGENCE ON ECONOMIC AND FINANCIAL CRIME: A CROSS-COUNTRY STUDY

Monica Violeta Achim, Sorin Nicolae Borlea, Viorela Ligia Vä‚idean, Alexandra Ioana Rus and Florin Dobre
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Monica Violeta Achim: Faculty of Economics and Business Administration, Babes-Bolyai University, No. 58-60, Teodor Mihali Street, 400591 Cluj-Napoca, Romania
Sorin Nicolae Borlea: ��Department of Economics, Faculty of Economics, Informatics and Engineering “Vasile Goldis†, Western University of Arad, No. 94, B-dul Revoluţiei, 310025 Arad, Romania‡Doctoral School of Economics, Faculty of Economics, University of Oradea, No. 1, Str. Universităţii, Bihor, 410087 Oradea, Romania
Viorela Ligia Vä‚idean: Faculty of Economics and Business Administration, Babes-Bolyai University, No. 58-60, Teodor Mihali Street, 400591 Cluj-Napoca, Romania
Alexandra Ioana Rus: Faculty of Economics and Business Administration, Babes-Bolyai University, No. 58-60, Teodor Mihali Street, 400591 Cluj-Napoca, Romania
Florin Dobre: �Bucharest University of Economic Studies, No. 6, Piaţa Romană, Sector 1, 010374 Bucharest, Romania

The Singapore Economic Review (SER), 2024, vol. 69, issue 08, 2521-2554

Abstract: The aim of this paper is to explore the relationship between intelligence and economic and financial crimes. For this purpose, we use a cross-sectional sample of 182 countries for the time span of 2012–2017. Our research provides empirical evidence on the existence of a significant impact of intelligence upon economic and financial crimes. When we analyze the entire sample, we find that intelligent people are more prone to comply with the law and thus increase the efficiency of implementing government policies to reduce economic and financial crimes. However, when we conduct our analysis among the two subgroups of high- and low-income countries, different results are obtained. For high-income countries, we obtain evidence of a positive coefficient for the impact of intelligence on economic and financial crimes, meaning that increased intellectual capacities of people from these countries, including high professional knowledge and skills, are used to break the traditional technology in order to get illegal benefits. Our results conducted for the low-income countries' subsample do not support intelligence as being a determining factor for economic and financial crimes; in these countries, other determinants are more important for engaging in such activities. Our study may have important implications for the policymakers who must acknowledge that various policies in the field of economic and financial crimes need to be differentially adopted depending on the level of development of each country, which offers different ways of involvement in such crimes, related to the level of people's intelligence.

Keywords: Intelligence; economic and financial crime index; corruption; shadow economy; money laundering; high-income countries; low-income countries (search for similar items in EconPapers)
JEL-codes: H11 H26 I25 O17 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1142/S0217590820500782

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