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Financial and Economic Crime: Effects on GDP and Human Development Index
The relationship between financial and economic crime variables (corruption, shadow economy, money laundering, cybercrime) and their impact on GDP per capita and HDI (Human Development Index) has been analyzed using regression models. This analysis provides insights into the effects of these crimes on economic prosperity and human development.
Key Findings
Corruption
- A 1% increase in corruption reduces GDP by 4.6% and HDI by 0.03%.
Shadow Economy
- A 10% increase in shadow economy reduces GDP by 11.91% and HDI by 7.01%.
Cybercrime
- A 1% increase in cybercrime increases GDP by 279.69% and HDI by 9.67%. (Note: This result seems unusual, as a small increase in cybercrime leads to a large increase in GDP.)
Money Laundering
- Each one unit increase in money laundering increases GDP by 14.56%.
Interpretation
The results suggest that corruption and shadow economy have negative effects on both economic prosperity (GDP) and human development (HDI). In contrast, cybercrime seems to have a positive relationship with both variables, although this result is likely due to an unusual modeling outcome.
Money laundering also appears to have a positive effect on GDP, but the magnitude of this effect may be exaggerated due to the nature of the model.
Limitations
Keep in mind that these results are based on a specific set of regression models and might not hold when considering other factors or using alternative methods.