Economics at your fingertips  

An exploration of dynamic relationship between tourist arrivals, inflation, unemployment and crime rates in Malaysia

Chor Foon Tang ()

International Journal of Social Economics, 2011, vol. 38, issue 1, 50-69

Abstract: Purpose - The main purpose of this study is to examine the dynamic relationship between tourist arrivals, inflation, unemployment and crime rates in Malaysia. This study covered the annual data from 1970 to 2008. Design/methodology/approach - The multivariate Johansen-Juselius cointegration test is employed to examine the potential long-run equilibrium relationship. While the Granger causality test within the vector error-correction modelling (VECM) framework is applied to determine the causal relationship between crime rate and its determinants. Findings - The Johansen-Juselius cointegration test result reveals that the variables are cointegrated and the dynamic ordinary least squares estimator suggest that unemployment, inflation and tourist arrivals are positively related to crime rates in Malaysia. For Granger causality, in the long-run tourist arrivals, inflation and unemployment rates Granger cause crime rate in Malaysia. However, in the short run we find bilateral causality between unemployment, crime and tourist arrivals. Finally, the variance decompositions and impulse response functions analyses implied that unemployment, inflation and tourist arrivals are important in explaining the variation in crime for Malaysia. Originality/value - The estimated crime rate function for Malaysia demonstrated that promoting supply-side economy and also increases the numbers of police and patrolling duties in the potential crime areas will reduce the crime rate in Malaysia and in the same time attract more tourist arrivals to Malaysia.

Keywords: Crimes; Inflation; Unemployment; Tourism; Malaysia (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link) ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK

Access Statistics for this article

International Journal of Social Economics is currently edited by Dr Colin Tyler and James Connelly

More articles in International Journal of Social Economics from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().

Page updated 2019-04-22
Handle: RePEc:eme:ijsepp:v:38:y:2011:i:1:p:50-69