How Crime affect Investment in Jamaica: Study

Assessing the Problem:

  • Puerto Rico, the Caribbean – Jamaica in particular – and other developing countries, since the 1980’s, have placed great emphasis on a ‘FDI’ lead development strategy. This strategy is expected to increase capital formation and bolster production efficiencies through the transfer of new technologies and investment capital.
  • The prevalence of Violent Crimes has been shown to have a negative impact on the productive capacity of many countries, exerting high levels of uncertainties, low expected returns and increased production costs among many other disincentives. Being cognizant of the implications of Violent Crimes on a country’s productive capacity, it can be deduced that incidents of Violent Crime can deter and dissuade investors from selecting Jamaica as an investment hub.

Purpose of this Study:

    • To examine the effect of Violent Crime on Foreign Direct Investment (FDI) in Jamaica through the use of a Violent Crime Index and Individual Crime Variables.

Analyzing the Data:

  • The Violent Crime Index is an average of the following crime variables: Murder, Rape and Carnal Abuse, Shooting with Intent and Robbery.
  • Data was retrieved from the Ministry of National Security 1970-2001.