The Relationship between Economic Activity and Types of Crime: A Panel Analysis of the Regions of the Czech Republic between 2005-2023

This study examines the influence of economic factors on crime in the regions of the Czech Republic from 2005 to 2023. The analysis utilizes panel data encompassing economic indicators such as Gross Domestic Product (GDP), the number of business entities exiting the market, and the number of unemployed individuals, alongside crime data across various types. Fixed effects models estimate the relationship between economic activity and crime, with robust standard errors corrected for heteroskedasticity and autocorrelation. Results indicate that GDP and the number of entities exiting the market significantly influence crime rates, while unemployment plays a minor role. An increase in entities exiting the market correlates with a rise in overall and general crime, whereas higher GDP reduces rates of economic crimes, robberies, and burglaries. These findings suggest that economic stability has the potential to mitigate certain types of crime, while economic instability may heighten general criminal activity. The results align with international studies and contribute to a deeper understanding of regional variations in crime dynamics in the Czech Republic, highlighting the need for targeted social policy measures and policies at the organizational level.