Criminal activity and private investment in Mexico: A spatial perspective, 1997-2010

Víctor Hugo Torres-Preciado, Mayrén Polanco-Gaytán, Francisco Venegas-Martínez

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

© 2015, Universidad Autonoma del Estado de Mexico. All rights reserved. The aim of this investigation is to analyse the effects of criminal activity on private investment among states in Mexico. To achieve this task, we propose a simple economic model that relates crime and investment, and explicitly considers spatial interactions effects. We perform the empirical analysis by applying the spatial data analysis methodology that consists of three components: exploratory analysis, graphical visualization and spatial econometric modelling. In particular, we estimate a Spatial Durbin Model that allows accounting for the presence of possible spatial crime diffusion effects. Our results suggest that crime exerts a negative effect on the demand for investment in Mexico, particularly those related with patrimonial crimes, and that homicides are possible cause of investment relocation.
Original languageAmerican English
Pages (from-to)203-251
Number of pages177
JournalPapeles de Poblacion
StatePublished - 1 Jan 2015

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