search query: @indexterm Poverty / total: 256
reference: 51 / 256
| Author: | Mehlum, H. Moene, K. Torvik, R. |
| Title: | Predator or prey? Parasitic enterprises in economic development |
| Journal: | European Economic Review
2003 : APR, VOL. 47:2, p. 275-294 |
| Index terms: | Economic development Crime Poverty Society Companies |
| Language: | eng |
| Abstract: | In many developing and transition economies, Mafia-like activities are rampant. Varying forms of predation lower profitability in private businesses and distort investment incentives. Incorporated in a model of industrialization, bimodal club convergence may result. Economies may get stuck in a Predators' Club characterized by a vicious cycle of poverty and predation. Societies with a low flow of new entrepreneurs are especially vulnerable to predation. Poor societies with a high flow of new entrepreneurs, however, may grow out of the trap and join the rich Producers' Club. |
SCIMA