International Economics Commons^™

Crime, Institutions And Sector-Specific Fdi In Latin America, Luisa Blanco, Isabel Ruiz, W. Charles Swayer, Rossitza Wooster

Economics Faculty Publications and Presentations

In this article, we explore how crime and institutions affect the flow of capital in the form of foreign direct investment (FDI) to Latin American and Caribbean countries in the primary, secondary and tertiary sectors during the 1996-2010 period. We use three different variables related to violent crime: homicides, crime victimization, and an index of organized crime. We find that there is a correlation between the institutional and crime variables, where the significance of institutional variables tends to disappear when the crime variables are added to the model. We find that higher crime victimization and organized crime are associated with …