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Socioeconomic Determinants of Cybercrime Costs: A Panel Data Analysis of OECD Countries

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  • Songsrirote, Nitiphong

Abstract

Cybercrime imposes significant financial burdens on economies, yet its relationship with socioeconomic factors remains underexplored. This study examines how key socioeconomic determinants influence cybercrime costs across 33 OECD countries from 2012 to 2023. Using a Random Effects model with Generalized Least Squares (GLS) estimation, the analysis identifies key drivers of cybercrime-related expenditures. The findings reveal two counterintuitive relationships: higher household debt and greater internet penetration are associated with lower cybercrime costs, suggesting that economic constraints and digital connectivity may reduce exposure to cyber threats. Additionally, a higher Corruption Perception Index (CPI)—which indicates lower corruption—is linked to increased cybercrime costs, possibly due to governance complacency or increased digital activity in well-regulated economies. These results challenge conventional assumptions about economic vulnerability and cybersecurity risks. The study underscores the need for targeted cybersecurity education, stronger institutional frameworks, and proactive investment in cyber resilience to mitigate financial losses. Policymakers should address economic constraints, promote digital literacy, and ensure cybersecurity measures evolve alongside governance improvements.

Suggested Citation

  • Songsrirote, Nitiphong, 2025. "Socioeconomic Determinants of Cybercrime Costs: A Panel Data Analysis of OECD Countries," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 32(1), January.
    • Handle: RePEc:ags:thkase:356822
    DOI: 10.22004/ag.econ.356822
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    References listed on IDEAS

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    Agribusiness; Consumer/Household Economics;

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