Abstract

ALVARADO LAGUNAS, Elías; DUANA AVILA, Danae  and  VALENCIA SANDOVAL, Karina. Determinants of Security Spending as a Form of Micro-Business Competitiveness Due to Crime. A Case Study for the Metropolitan Area of Monterrey. Econ: teor. práct [online]. 2021, n.55, pp.127-148.  Epub Oct 25, 2021. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/552021/alvarado.

The aim of this paper is to identify the determinants of spending on protection measures by micro-business in the metropolitan Monterrey area of Mexico. The information collected in 2018 from a sample of 3,310 micro-entrepreneurs is used to make an ordinary least squares model, which is then corrected by the Heckman self-selection procedure so as to enable calculating the probability of micro-businesses deciding to spend on protection. The results show that micro-entrepreneurs spend more on protection measures when crimes have been committed in the vicinity of the micro-business. It was also found that the characteristics of the micro-entrepreneur (age, level of education and perception) are determining factors that influence spending on protection to prevent theft.

Keywords : Crime; micro-business; Heckman’s method; C34; D01; D63.

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