Impact of crime on economic development of the Russian regions

• Main Authors: Alina A. Shakirova, Timur V. Kramin
• Format: Article
• Language: English
• Published: Tatar Educational Center "TAGLIMAT" Ltd. 2019-06-01
• Series: Aktualʹnye Problemy Èkonomiki i Prava
• Subjects: norms
• Online Access: http://apel.ieml.ru/storage/archive_articles/9909.pdf
• ISSN: 1993-047X; 2410-0390

Objective to analyze the impact of crime as a social capital measure on economic growth in the regions and municipalities of the Russian Federation. Methods general scientific methods of analysis and synthesis econometric modeling. Results the paper reviews the literature on the relationship between social capital and crime rate as well as the impact of crime on economic growth The bonding social capital may generate groups competing for the public goods which leads to a zero or negative impact of social capital. It also presents an analysis of the impact of crime rate as measures of negative social capital on the economic growth of the Russian Federation regions including municipalities of the Republic of Tatarstan. The number of registered crimes served as a measure of social capital. The assessment of such an element of social capital as norms through the number of crimes the level of crime and other indicators is one of the generally recognized approaches. The analysis was carried out using an extended regression model based on the CobbndashDouglas production function. Social capital measured by the number of reported crimes was included as an additional factor in the model. It is scientifically proved that crime in foreign countries affects economic development and economic growth. The econometric modeling carried out in this article proves the existence of this relationship at the regional and municipal level in Russia. Scientific novelty at present the impact of norms as an element of social capital on the regional economic development is little studied. In this study based on the approaches of economic and mathematical modeling the influence of such an element of social capital as the norms measured by the number of crimes on the gross regional product of the Russian Federation subjects and the gross territorial product of the Republic of Tatarstan municipalities for 2008ndash2016 is proved. Practical significance the findings of the study can be applied in the activities of regional and municipal authorities forming the regional or municipal policy in the Russian Federation.