Encirclements of Property Rights Through Economic Complexity in an Umbrella of Justice and Governance: An Empirical Analysis

Abstract

This research paper addresses the complex relationship between governance, justice, and violent crime in high middle-income countries. By analyzing panel data spanning the years 2012 to 2020 and using the Generalized Method of Moments (GMM) technique, this study offers valuable insights into the underlying causes of violent crime and its impact on economic well-being. The study posits three main contentions: first, that countries with exclusive political and economic institutions may have weak governance and judicial systems, allowing corrupt practices to thrive. Second, the study explores the indirect relationship between justice and governance and violent crime. Lastly, it examines the role of institutions in mitigating violent crime. Empirical findings reveal that institutions such as justice and governance play a critical role in curtailing violent crime in high middle-income countries. Moreover, efficient per capita income reinforces the importance of institutions in this context. Additionally, the study finds that education, economic complexity, and remittances have a negative and significant relationship with violent crime. Conversely, the urban population has a positive yet insignificant relationship with the crime rate. The study concludes by recommending that the selected countries prioritize promoting institutional efficiency and expanding access to education. These measures could help combat violent crime and foster greater economic prosperity for these countries.