Empirical Economic Bulletin, An Undergraduate Journal


This paper investigates the relationship between flows of FDI into South America and how it affects crime and how crime affects FDI. The paper incorporates a fixed effects model within an FDI model to examine how flows of FDI from foreign countries into South America impact crime in these countries. This study will use ten countries from South America in a panel data set from 2010 to 2016 that have different FDI intakes and crime rates. This is so that a well-rounded picture can be seen.