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Crime and economic conditions in Malaysia

Author

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  • Muzafar Shah Habibullah
  • A.H. Baharom

Abstract

Purpose - The purpose of this paper is to analyze the impact of economic conditions on various categories of criminal activities in Malaysia for the period 1973-2003. Design/methodology/approach - The autoregressive distributed lag bounds testing procedure was employed as the main tool. Dynamic ordinary least squares was also used to check the robustness of the results. Findings - The results indicate that murder, armed robbery, rape, assault, daylight burglary, and motorcycle theft exhibit long-run relationships with economic conditions, and the causal effect in all cases runs from economic conditions to crime rates and not vice versa. In the long-run, strong economic performances have a positive impact on murder, rape, assault, daylight burglary, and motorcycle theft, while on the other hand, economic conditions have negative impact on armed robbery. Research limitations/implications - Further researches using other macroeconomic variables and also other countries are encouraged. Practical implications - The important implication of this result is that real gross national product per capita is an exogenous variable and it is, therefore, useful for fiscal policy variable. Government of the day should seriously consider the results of this study in any crimefighting policies that are formulated. Originality/value - An economic viewpoint of criminal activities in Malaysia.

Suggested Citation

  • Muzafar Shah Habibullah & A.H. Baharom, 2009. "Crime and economic conditions in Malaysia," International Journal of Social Economics, Emerald Group Publishing, vol. 36(11), pages 1071-1081, September.
  • Handle: RePEc:eme:ijsepp:v:36:y:2009:i:11:p:1071-1081
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    References listed on IDEAS

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    Cited by:

    1. Ahad, Muhammad, 2016. "Nexus Between Income Inequality, Crime, Inflation and Poverty: New Evidence from Structural Breaks for Pakistan," MPRA Paper 72429, University Library of Munich, Germany, revised 2016.
    2. Awais Anwar & Noman Arshed & Sofia Anwar, 2017. "Socio-economic Determinants of Crime: An Empirical Study of Pakistan," International Journal of Economics and Financial Issues, Econjournals, pages 312-322.
    3. Lau, Evan & Hamzah, Siti Nur Zahara, 2012. "Crimonometric Analysis: Testing the Deterrence Hypothesis in Sabah," MPRA Paper 39297, University Library of Munich, Germany.
    4. Chor Foon Tang, 2011. "An exploration of dynamic relationship between tourist arrivals, inflation, unemployment and crime rates in Malaysia," International Journal of Social Economics, Emerald Group Publishing, vol. 38(1), pages 50-69, January.
    5. Diana L Carreon-Guzman & Jorge Garza-Rodriguez & David R Garza-Turrubiates & Ricardo A Gonzalez-Camargo & Eugenio Lozano-Castillo, 2015. "The effects of crime on the Mexican economy: a vector error correction model," Economics Bulletin, AccessEcon, vol. 35(2), pages 959-967.
    6. Claudio Detotto & Manuela Pulina, 2013. "Does more crime mean fewer jobs and less economic growth?," European Journal of Law and Economics, Springer, vol. 36(1), pages 183-207, August.

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    Keywords

    Crimes; Economic conditions; Malaysia;

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