Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis

In this paper, the authors use dynamic panel data in order to assess the linkages between the cost of living, income inequality, gross domestic product (GDP) per capita, population and unemployment rate with respect to the street crime rate in Malaysia. More specifically, the investigation conside...

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Main Authors: Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:http://journalarticle.ukm.my/14068/1/jeko_53%281%29-6.pdf
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author Rusli Latimaha,
Zakaria Bahari,
Nor Asmat Ismail,
author_facet Rusli Latimaha,
Zakaria Bahari,
Nor Asmat Ismail,
author_sort Rusli Latimaha,
collection UKM
description In this paper, the authors use dynamic panel data in order to assess the linkages between the cost of living, income inequality, gross domestic product (GDP) per capita, population and unemployment rate with respect to the street crime rate in Malaysia. More specifically, the investigation considers whether the following could be capable of generating any difference in the crime rate observed across many types of street crime. The F-test, Breusch-Pagan Lagrange Multiplier test and Hausman tests affirm the most preferred model to explain criminal behaviour is by using Fixed Effects Model almost for all types of street crime. The findings of the estimated coefficients reveal that the cost of living is negatively related to all street crime types and not significant as well as unemployment rate. There is a motivation towards street crime not to earn a living or jobless, but other motivating push factors that relate to the personalities of the offenders such as drug addiction. Moreover, income inequality is only significant in terms of total street crime and unarmed robbery gang estimation models as well as GDP per capita and population in snatch and theft estimation models. Interestingly, we extend the by changing the definition of crime into percentage and the results show that the cost of living is significant with the correct sign and has a positive relationship with all types of street crime rates except for snatch and theft estimation models. The GDP per capita is also a main influencer on all types of street crime rates and has a negative relationship. Finally, the unemployment rate is only significant in the unarmed robbery estimation models and has a positive relationships as well as income inequality variable in total street crime and unarmed robbery gang estimation models. This street crime has been shown to be sensitive to the change in unemployment rate and income inequality and also have positive linkages.
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spelling ukm.eprints-140682020-01-31T22:26:12Z http://journalarticle.ukm.my/14068/ Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis Rusli Latimaha, Zakaria Bahari, Nor Asmat Ismail, In this paper, the authors use dynamic panel data in order to assess the linkages between the cost of living, income inequality, gross domestic product (GDP) per capita, population and unemployment rate with respect to the street crime rate in Malaysia. More specifically, the investigation considers whether the following could be capable of generating any difference in the crime rate observed across many types of street crime. The F-test, Breusch-Pagan Lagrange Multiplier test and Hausman tests affirm the most preferred model to explain criminal behaviour is by using Fixed Effects Model almost for all types of street crime. The findings of the estimated coefficients reveal that the cost of living is negatively related to all street crime types and not significant as well as unemployment rate. There is a motivation towards street crime not to earn a living or jobless, but other motivating push factors that relate to the personalities of the offenders such as drug addiction. Moreover, income inequality is only significant in terms of total street crime and unarmed robbery gang estimation models as well as GDP per capita and population in snatch and theft estimation models. Interestingly, we extend the by changing the definition of crime into percentage and the results show that the cost of living is significant with the correct sign and has a positive relationship with all types of street crime rates except for snatch and theft estimation models. The GDP per capita is also a main influencer on all types of street crime rates and has a negative relationship. Finally, the unemployment rate is only significant in the unarmed robbery estimation models and has a positive relationships as well as income inequality variable in total street crime and unarmed robbery gang estimation models. This street crime has been shown to be sensitive to the change in unemployment rate and income inequality and also have positive linkages. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14068/1/jeko_53%281%29-6.pdf Rusli Latimaha, and Zakaria Bahari, and Nor Asmat Ismail, (2019) Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis. Jurnal Ekonomi Malaysia, 53 (1). pp. 59-72. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2019.html
spellingShingle Rusli Latimaha,
Zakaria Bahari,
Nor Asmat Ismail,
Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis
title Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis
title_full Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis
title_fullStr Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis
title_full_unstemmed Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis
title_short Examining the linkages between street crime and selected state economic variables in Malaysia: a panel data analysis
title_sort examining the linkages between street crime and selected state economic variables in malaysia a panel data analysis
url http://journalarticle.ukm.my/14068/1/jeko_53%281%29-6.pdf
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