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The Role of Human Capital, Corruption and Quality of Life in Determining the Crime Rate: Empirics from Pakistan

Alina Qamar and Maria Safdar

MPRA Paper from University Library of Munich, Germany

Abstract: Crime is an evil that is increasing day by day in Pakistan. Different factors contribute to the increasing crime trend. This study investigates the impact of human capital, corruption, quality of life, economic misery and rule of law on the crime rate in Pakistan over the period 1985-2019. To find out short-term and long-term dynamics, the Vector Error Correction Model (VECM) is used. For checking casual relationships among variables, the Toda Yamamoto Causality test is used. The results confirm the significant and long-term impact of human capital, corruption, quality of life, economic misery and rule of law on the crime rate in Pakistan. Three channels of bidirectional causality are found with the economic misery index from corruption and human capital, and between the rule of law and corruption. Unidirectional causality runs from human capital, corruption, quality of life and economic misery to crime.

Keywords: Crime Rate; Human Capital; Quality of Life; Economic Misery (search for similar items in EconPapers)
JEL-codes: J16 K1 O15 (search for similar items in EconPapers)
Date: 2021-04
New Economics Papers: this item is included in nep-law
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