Link between economic development and crime and corruption Research Paper

Link between economic development and crime and corruption - Research Paper Example Experts who have not found a close link between economics and crime have linked increased crime outbreaks to a rapid rise in drug markets. Some even linked crime to inequality and injustice meted out to certain sections of the population. However, many experts continue to maintain that recession is in most cases the trigger for a rise in crime rates. The main reason for a lack of clear understanding between the various factors has been attributed to the inability of economists to conduct appropriate studies to ascertain the links. Many crimes occurring in the society is driven by favorable opportunities and changes brought about by social and scientific developments. For example, developments of better locking systems and use of advanced monitoring systems can bring down the crime rates in society irrespective of economic upheavals. However, crime rates are also likely to soar due to increasing unemployment rates that cause marked behavioral changes among the youth. While some expert s argue that lack of resources would prevent people from engaging in criminal activities, many others cite bouts of inflation and the increased demand for goods can also result in increase in criminal activities (Plumer, 2010). The second article by Wei reported in the National Bureau of Economic Research, explores the effect of corruption on the economic development of a country. In the case of the link between corruption and economic development, one of the first studies conducted for this analysis was by Mauro, who conducted a cross country regression study. From his study he concluded that countries where there was widespread corruption showed a much slower economic growth. However, since many factors can contribute to slower growth it is much difficult to solely analyze the effects due to corruption. One of the ways by which corruption deters economic growth is by reducing foreign direct

Essey 6 k Essay Example | Topics and Well Written Essays - 250 words

Essey 6 k - Essay Example Besides, Lao anticipates benefiting from improved infrastructure, job opportunities and growth of local industries from the investments. Some of the foreign direct investments in Lao comprise of construction of showrooms in the major cities. Thus far, the American firm RMA is in the process of venturing in Lao. The move shall facilitate distribution of the major brands like John Deere tractors, Land Rover and other automobile equipment. Besides, Coca-Cola Company construction of a bottling plant in the country is a notable investment. Additional foreign direct investments include the banking industry, for example, the Malayan Banking Bhd, industries expansion like Essilor that makes eyeglass lenses. In addition, the country attracts real estate investors like the Shanghai Wanfengs and investments in infrastructure like a railway line construction. Risks of foreign direct investment in Lao include the unstable commercial laws that expose foreign investors to vulnerabilities like loss of properties. In addition, the government’s biassed in conflict resolution makes the environment volatile. Finally, prevalence of corruption makes the business condition unbearable for