Trafficking in Persons - An Economics Perspective Part 1 of 3

Why is Trafficking in Persons (TIP) more widespread in some countries than others? Different theories associate this with levels of economic development, political institutions, government policies and particular historical and cultural traditions. This article analyzes human trafficking rates (HTR) from 64 countries compiled by UNODC for the period 2003-2008. The following eight arguments find significant empirical support: Countries with Protestant traditions, higher Misery Index, higher GDP per capital, and (especially) OECD members were less susceptible to TIP. Countries with a higher level of 'ethno-linguistic' fragmentation and Islamic countries had higher HTR. While openness of the economy increases HTR, we found that countries can grow their way out of TIP after long exposure to trade.