The Economic Impact of Crime

Date Published: 
October, 2007
Document Author(s): 
CAPRI
Thematic Area: 

Research on the relationship between crime and the economy in Jamaica found two key links. One is that crime directly retards economic growth. The second is that the high rate of violent crime, apparently connected to high levels of interpersonal trust and low levels of confidence in the organs of the State - the olice and court system - heightens transaction costs and therefore diminishes economic activity.