Copyright (c) 2009 All rights reserved. http://works.bepress.com/catherine_de_fontenay Recent documents in Catherine de Fontenay en-us Sun, 31 May 2009 04:13:33 PDT 3600 http://works.bepress.com/catherine_de_fontenay/12 http://works.bepress.com/catherine_de_fontenay/12 Thu, 28 May 2009 01:57:25 PDT We add a new sector called Crime to a traditional two-sector two-input Heckscher-Ohlin model of trade between countries. Trade is found to increase crime in the resource-rich country and to reduce crime in the resource-poor country by an equal amount. The negative externality from increased crime can be strong enough to cancel out the gains from trade for the resource-rich country. The paper also explores the impact of aid, capital flows, and migration on crime rates, and how crime shapes the degree of specialization in each economy. Catherine C. de Fontenay