The virtuous relationship of security and foreign direct investment in Colombia (1994 - 2013)
Keywords:
Violence, foreign direct investment, crime rate, ColombiaAbstract
This article considers GDP, foreign direct investment and crime in Colombia, between 1994
and 2013, in order to explore the relations that can exist between them, taking into consideration a Criminality Index, which brings together high impact crimes. The hypothesis states that better security conditions in the country during the previous decade, evidenced by the reduction of the criminality index, favored the increase of foreign investment, which ultimately enables a greater economic and social development in the long run. To test the
hypothesis, an ARIMA-ARCH model is used, which takes up the volatility and inertia of the
variables, finding an inverse relationship between crime and foreign investment; a direct
relationship between foreign investment and product; and an inverse relationship between
crime index and the country’s product.
Downloads
References
Acemoglu, D., Robinson, J. A., & Woren, D. (2012). Why nations fail: the origins of power, prosperity and poverty (Vol. 4). New York: Crown Business.
Aguiar, S., Aguiar-Conraria, L., Gulamhussen, M. A., & Magalhães, P. C. (2012). Foreign direct investment and home-country political risk: the case of Brazil. Latin American Research Review, 47(2), pp. 144-165.
Aizenman, J., & Glick, R. (2003). Military expenditure, threats, and growth (No. w9618). National Bureau of Economic Research.
Álvarez, S., & Rettberg, A. (2008). Cuantificando los efectos económicos del conflicto: una exploración de los costos y los estudios sobre los costos del conflicto armado colombiano. Colombia Internacional, (67), pp. 14-37.
Ashby, N. J., & Ramos, M. A. (2013). Foreign direct investment and industry response to organized crime: The Mexican case. European Journal of Political Economy, pp. 30, 80-91.
Ayres, R. L. (1998) Crime and violence as development issues in Latin America and the Caribbean. World Bank Publications.
Bosworth, B., & Collins, S. M. (2003) The empirics of growth: An update. Brookings papers on economic activity, 2003(2), 113-206.
CEPAL (20019. A. E. D. A. L. Una década de luces y sombras: América Latina y el Caribe en los años noventa. CEPAL, Bogotá.
Coinvertir y Departamento Nacional de Planeación (2000). Obstáculos y oportunidades para la inversión extranjera en Colombia. Bogotá.
Correa-Cabrera, G. (2013). Desarrollo Empresarial, Inversión Extranjera y Crimen Organizado en México: Los Efectos Reales de la Violencia.
Daniele, V., & Marani, U. (2011). Organized crime, the quality of local institutions and FDI in Italy: A panel data analysis. European Journal of Political Economy, 27(1), pp. 132-142.
Detotto, C., & Otranto, E. (2010). Does crime affect economic growth?. Kyklos, 63(3), pp. 330-345.
De Mello, J. M., & Zilberman, E. (2008). Does crime affect economic decisions? An empirical investigation of savings in a high-crime environment. The BE Journal of Economic Analysis & Policy, 8(1).
Di Tella, R., Edwards, S., & Schargrodsky, E. (Eds.) (2010). The economics of crime: lessons for and from Latin America. University of Chicago Press.
Echeverry, J. C., Salazar, N., & Navas, V. (2001). El conflicto colombiano en el contexto internacional, Martínez, A.(Editora), Economía, Crimen y Conflicto. Universidad Nacional: Bogotá, pp. 77-128.
Gutiérrez, F. (2014). El orangután con sacoleva: cien años de democracia y represión en Colombia (1910- 2010). Bogotá: Ed. Debate.
Kaufmann, D., Kraay, A., & Mastruzzi, M. (2009). Governance matters VIII: aggregate and individual governance indicators, 1996-2008. World bank policy research working paper, (4978).
Londoño, J. L., & Guerrero, R. (2000) Violencia en América Latina: epidemiología y costos. Asalto al desarrollo. Violencia en América Latina.
Lucas, R. E. (1990). Why doesn’t capital flow from rich to poor countries?. The American Economic Review, pp. 92-96.
Lucas, R. E. (1998). On the mechanics of economic development. ECONOMETRIC SOCIETY MONO- GRAPHS, pp. 29, 61-70.
Maertens, F., & Anstey, C. (2007). Crime, violence, and development: Trends, costs, and policy options in the Caribbean. Caribbean: United Nations Office on Drugs and Crime Latin America and the Caribbean Region of the World Bank.
Mauro, P. (1995). Corruption and growth. The quarterly journal of economics, pp. 681-712.
Ministerio de Defensa Nacional & Departamento Nacional de Planeación. (2009). Metodología para el cálculo del gasto en defensa y seguridad. Imprenta Nacional de Colombia.
Mundial, B. (2007). Crime, violence, and development: trends, costs, and policy options in the Caribbean. In Crime, violence, and development: trends, costs, and policy options in the Caribbean. ONU.
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge university press.
O’Connor, E. (2011). El debate de la política económica y la crisis global. Programa de Análisis de Coyuntura Económica-PAC Informe Económico. Número 6.
Pan, M., Widner, B., & Enomoto, C. E. (2012). Growth and crime in contiguous States of México. Review of Urban & Regional Development Studies, 24(1-2), pp. 51-64.
Parra, C. (1998). Determinantes de la inversión en Colombia: evidencia sobre el capital humano y la violencia. Archivos de macroeconomía, (84).
Quintero, D. M., Lahuerta, Y., & Moreno, J. M. (2008). Un índice de criminalidad para Colombia. Revista Criminalidad, (50), pp. 37-58.
Suarez, G., & Pshisva, R. (2006). “Captive Markets”: The Impact of Kidnappings on Corporate Investment in Colombia. FEDS Working Paper No. 2006-18.
Downloads
Published
How to Cite
Issue
Section
License
Ensayos de Política Económica