Digital Commons Network^™

Organized Crime And Development In Low And Middle-Income Countries, Katie Kelshaw

Boise State University Theses and Dissertations

The presence of organized crime is common across all income levels, but the effects of organized crime differ between low-income and middle-income countries. Institutionally, socially, and economically, criminal organizations make contributions which affect the states they are in. This paper theorizes that the contributions made by organized crime help development in low-income countries, then later harms development in middle-income countries. Empirical tests find that the direct effects of organized crime are not significant in low and middle-income countries. The indirect effects of organized crime – corruption in the public sector — have a negative effect on development.