THE IMPACT OF CRIME RATES ON ECONOMIC GROWTH IN ASIAN REGION

Abstract

The economic growth of a country directly affects the improvement of the living standards of the people in that country. It is determined by a number of factors, among which crime is considered in this study. The main purpose of this study is to find out whether crime affects the economic growth from Asian countries. This research studied the relationship between crime rates and economic growth rates using 23 Asian countries during the period 2014-2018. A simple regression model was used to study the crime rate as an independent variable and the economic growth rate as a dependent variable. It uses the annual data published by the United Nations stated on crime in selected 23 countries for the year 2014-2018. The Asian countries considered there indicated that there was a negative relationship between the crime rate and the economic growth rate and it was significant value. When the crime rate changes from one log unit, the number of economic growth rate varies by -0.221 log unit in the findings. The study concluded that crime in Asian countries could also play a vital role in boosting economic growth. Accordingly, it can be concluded that it is necessary to take relevant decisions and formulate policies regarding the reduction of crimes in countries when economic growth is expected