Does crime impede economic growth? An evidence from India
Crime imposes significant direct and indirect costs on society. While a great wealth of literature focuses on crime as a result of prevailing economic conditions, one cannot exclude the possibility that the relationship between crime and economic growth may go the other way around. This study employ...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Social Sciences |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311886.2023.2196814 |
| _version_ | 1827198867969409024 |
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| author | Pranav Raj Siva Reddy Kalluru |
| author_facet | Pranav Raj Siva Reddy Kalluru |
| author_sort | Pranav Raj |
| collection | DOAJ |
| description | Crime imposes significant direct and indirect costs on society. While a great wealth of literature focuses on crime as a result of prevailing economic conditions, one cannot exclude the possibility that the relationship between crime and economic growth may go the other way around. This study employs an Autoregressive Distributed Lag (ARDL) approach to empirically examine the extent to which homicides affect economic growth. The case study was conducted in India, and longitudinal annual data from 1990 to 2019 were employed. The bounds cointegration test reveals that crime rate, proxied by homicide rate, along with investment, FDI, exports, and enrolment Granger cause real per capita GDP in the long run. The homicide rate will have a significantly negative impact on economic growth in the short run. A one percentage increase in homicide rates leads to 0.25% decrease in economic growth. The findings point to urgent attention to the reduction of crime rates by increasing the opportunity cost of criminal activities and reducing the damaging effects of homicides on economic growth. |
| first_indexed | 2024-03-12T16:46:49Z |
| format | Article |
| id | doaj.art-b3a51beebbf342d6ac92ea5a0db92981 |
| institution | Directory Open Access Journal |
| issn | 2331-1886 |
| language | English |
| last_indexed | 2025-03-21T10:23:51Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Social Sciences |
| spelling | doaj.art-b3a51beebbf342d6ac92ea5a0db929812024-07-03T09:55:03ZengTaylor & Francis GroupCogent Social Sciences2331-18862023-12-019110.1080/23311886.2023.2196814Does crime impede economic growth? An evidence from IndiaPranav Raj0Siva Reddy Kalluru1Department of Economics, MIE-SPPU IoHE, Doha, QatarDepartment of Economics, Gokhale Institute of Politics and Economics, Pune, IndiaCrime imposes significant direct and indirect costs on society. While a great wealth of literature focuses on crime as a result of prevailing economic conditions, one cannot exclude the possibility that the relationship between crime and economic growth may go the other way around. This study employs an Autoregressive Distributed Lag (ARDL) approach to empirically examine the extent to which homicides affect economic growth. The case study was conducted in India, and longitudinal annual data from 1990 to 2019 were employed. The bounds cointegration test reveals that crime rate, proxied by homicide rate, along with investment, FDI, exports, and enrolment Granger cause real per capita GDP in the long run. The homicide rate will have a significantly negative impact on economic growth in the short run. A one percentage increase in homicide rates leads to 0.25% decrease in economic growth. The findings point to urgent attention to the reduction of crime rates by increasing the opportunity cost of criminal activities and reducing the damaging effects of homicides on economic growth.https://www.tandfonline.com/doi/10.1080/23311886.2023.2196814CrimeEconomic GrowthBounds Test of CointegrationARDLIndiaK40 |
| spellingShingle | Pranav Raj Siva Reddy Kalluru Does crime impede economic growth? An evidence from India Cogent Social Sciences Crime Economic Growth Bounds Test of Cointegration ARDL India K40 |
| title | Does crime impede economic growth? An evidence from India |
| title_full | Does crime impede economic growth? An evidence from India |
| title_fullStr | Does crime impede economic growth? An evidence from India |
| title_full_unstemmed | Does crime impede economic growth? An evidence from India |
| title_short | Does crime impede economic growth? An evidence from India |
| title_sort | does crime impede economic growth an evidence from india |
| topic | Crime Economic Growth Bounds Test of Cointegration ARDL India K40 |
| url | https://www.tandfonline.com/doi/10.1080/23311886.2023.2196814 |
| work_keys_str_mv | AT pranavraj doescrimeimpedeeconomicgrowthanevidencefromindia AT sivareddykalluru doescrimeimpedeeconomicgrowthanevidencefromindia |