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Too Risky for Businesses?—Examining the Relationship Between Crime and Firm Registrations in India

Shreya Biswas & Ritika Jain

Economic Notes2025https://doi.org/10.1111/ecno.70006article
AJG 1ABDC B
Weight
0.37

Abstract

The study examines the relationship between crime and firm entry in India. Using district‐level data for a decade, we find that an increase in crime is related to fewer firms registering in the district. The results are robust to estimation approaches that address the endogeneity related to crime variable. We also explore the pathways through which crime negatively affects firm entry in India. We provide suggestive evidence in favour of a fall in demand caused by the lower income of existing firms in the market as one of the reasons why crime lowers firm entry. Additionally, we show that fear of victimisation is also a possible channel that drives the negative relationship between crime and firm entry. However, we do not find any evidence that crime increases the expenses incurred by existing firms. The findings have important policy implications in terms of the importance of a stable environment for firm entry.

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https://doi.org/https://doi.org/10.1111/ecno.70006

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@article{shreya2025,
  title        = {{Too Risky for Businesses?—Examining the Relationship Between Crime and Firm Registrations in India}},
  author       = {Shreya Biswas & Ritika Jain},
  journal      = {Economic Notes},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/ecno.70006},
}

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.