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Using Increases in Criminal Deportees from the US to Estimate the Effect of Crime on Economic Growth and Development in Latin America and the Caribbean

Department of Economics, Central Connecticut State University, P.O. Box 4010, New Britain, CT 06050-4010, USA
Academic Editor: Ingrid V. Eagly
Laws 2015, 4(4), 691-708; https://doi.org/10.3390/laws4040691
Received: 20 August 2015 / Revised: 27 October 2015 / Accepted: 27 October 2015 / Published: 5 November 2015
(This article belongs to the Special Issue Immigration Law and Criminal Justice)
Previous empirical studies have uncovered little evidence that crime hinders development, possibly due to simultaneity problems. This paper uses the increase in criminal deportees from the US as an instrumental variable to identify the causal effect of crime on economic growth and development. An increase in the number of criminal deportees received by a country is shown to substantially increase that country’s homicide rate. Using panel data for a sample of 30 Latin America and the Caribbean (LAC) countries, I show that the increase in crime is becoming a major obstacle to growth and development in the region. View Full-Text
Keywords: criminal deportees; development; Homicides; instrumental variable; LAC criminal deportees; development; Homicides; instrumental variable; LAC
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Blake, G.O. Using Increases in Criminal Deportees from the US to Estimate the Effect of Crime on Economic Growth and Development in Latin America and the Caribbean. Laws 2015, 4, 691-708.

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