IDEAS home Printed from https://ideas.repec.org/a/rau/journl/v11y2016i2p29-42.html
   My bibliography  Save this article

Effect Of Crime On Poverty In Nigeria

Author

Listed:
  • Adenuga Fabian ADEKOYA

    (Universiti Utara Malaysia)

  • SNor Azam Abdul RAZAK

    (Universiti Utara Malaysia)

Abstract

The link between crime and poverty was considered in this work by controlling for economic growth.That is, the study examined the cointegration of these variables and based on previous work; the issue of causal relationship among these variables were studied. Moreover, the study extends the theory of rational choice to poverty situation in Nigeria by testing the crime-wealth hypothesis in rational choice theory. In testing these hypotheses, the study used data set from 1990 to 2012 and analysed data through the estimation of bounds test; vector error correction model and Granger causality test. Also, for policy making the levels of shocks convergence were determined by variance decomposition test. However, the results showed that there is existence of short-run impact of crime on poverty and a unidirectional causality of crime affecting poverty using the Granger causality which support the crime-wealth hypothesis. In addition, growth played crucial role by impacting on poverty in the short-run and further, a bidirectional relationship was obtained between growth and poverty in the Granger causality. Based on these results, the study suggested that the policy makers should encourage policies that can improve economic growth with the possibility that crime may be reduced in the country and consequently, the reduction of poverty as well

Suggested Citation

  • Adenuga Fabian ADEKOYA & SNor Azam Abdul RAZAK, 2016. "Effect Of Crime On Poverty In Nigeria," Romanian Economic Business Review, Romanian-American University, vol. 11(2), pages 29-42, June.
    • Handle: RePEc:rau:journl:v:11:y:2016:i:2:p:29-42
    as

    Download full text from publisher

    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SU16/REBE-SU16-A3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    3. Chien-Chieh Huang & Derek Laing & Ping Wang, 2004. "Crime And Poverty: A Search-Theoretic Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 909-938, August.
    4. George Saridakis, 2011. "Violent crime and incentives in the long-run: evidence from England and Wales," Journal of Applied Statistics, Taylor & Francis Journals, vol. 38(4), pages 647-660, November.
    5. Claudio Detotto & Manuela Pulina, 2013. "Does more crime mean fewer jobs and less economic growth?," European Journal of Law and Economics, Springer, vol. 36(1), pages 183-207, August.
    6. Paresh Kumar Narayan & Russell Smyth, 2004. "Crime rates, male youth unemployment and real income in Australia: evidence from Granger causality tests," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2079-2095.
    7. Alexander Cotte Poveda, 2012. "Violence And Economic Development In Colombian Cities: A Dynamic Panel Data Analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(7), pages 809-827, October.
    8. Farooq, Abdul & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2013. "Does corruption impede economic growth in Pakistan?," Economic Modelling, Elsevier, vol. 35(C), pages 622-633.
    9. Ferda Halicioglu, 2012. "Temporal causality and the dynamics of crime in Turkey," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(9), pages 704-720, July.
    10. Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2005. "Crime induced poverty traps," Journal of Development Economics, Elsevier, vol. 77(2), pages 325-340, August.
    11. Nathaniel Umukoro, 2013. "Poverty and Social Protection in Nigeria," Journal of Developing Societies, , vol. 29(3), pages 305-322, September.
    12. Dare Akerele & Siaka Momoh & Samuel A. Adewuyi & Biola B. Phillip & Olumuyiwa F. Ashaolu, 2012. "Socioeconomic determinants of poverty among urban households in South‐West Nigeria," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(3), pages 168-181, February.
    13. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
    14. Shyh-Wei Chen, 2009. "Investigating causality among unemployment, income and crime in Taiwan: evidence from the bounds test approach," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(1), pages 115-125.
    15. Sanjeev Gupta & Hamid Davoodi & Rosa Alonso-Terme, 2002. "Does corruption affect income inequality and poverty?," Economics of Governance, Springer, vol. 3(1), pages 23-45, March.
    16. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cornelius O. Okorie & Christopha C. Arua & Felix M. Nwankwo, 2023. "Nigerian State and Rent-Dependent Economy: An Exposition of Vision 2020 Policy Strategies for Future Sustainable Development," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(3), pages 1330-1345, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adenuga Fabian Adekoya & Nor Azam Abdul Razak, 2018. "Unemployment and Violence: ARDL Endogeneity Approach. (Desempleo y violencia: Enfoque de endogeneidad ARDL)," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 155-176, October.
    2. Ms. Concha Verdugo Yepes & Mr. Peter L. Pedroni & Xingwei Hu, 2015. "Crime and the Economy in Mexican States: Heterogeneous Panel Estimates (1993-2012)," IMF Working Papers 2015/121, International Monetary Fund.
    3. Adekoya Adenuga Fabian & Razak Nor Azam Abdul, 2016. "The Link Between Economic Growth, Crime and Deterrence Measures in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 26(4), pages 24-40, November.
    4. Awais Anwar & Noman Arshed & Sofia Anwar, 2017. "Socio-economic Determinants of Crime: An Empirical Study of Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 312-322.
    5. Baharom, A.H. & Habibullah, M.S., 2008. "Crime and Income Inequality: The Case of Malaysia," MPRA Paper 11871, University Library of Munich, Germany.
    6. Adekoya Adenuga Fabian & Abdul Razak Nor Azam, 2017. "The Dynamic Relationship between Crime and Economic Growth in Nigeria," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 53(1), pages 47-64, March.
    7. Claudio Detotto & Manuela Pulina, 2013. "Does more crime mean fewer jobs and less economic growth?," European Journal of Law and Economics, Springer, vol. 36(1), pages 183-207, August.
    8. Halicioglu, Ferda & Andrés, Antonio R. & Yamamura, Eiji, 2012. "Modeling crime in Japan," Economic Modelling, Elsevier, vol. 29(5), pages 1640-1645.
    9. David B. Mustard, 2010. "Labor Markets and Crime: New Evidence on an Old Puzzle," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 14, Edward Elgar Publishing.
    10. Ferda Halicioglu, 2012. "Temporal causality and the dynamics of crime in Turkey," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(9), pages 704-720, July.
    11. Kumar, Surender, 2013. "Crime and Economic Growth: Evidence from India," MPRA Paper 48794, University Library of Munich, Germany.
    12. Md. Thasinul Abedin & Rajarshi Mitra & Kanon Kumar Sen, 2022. "Does Refugee Inflow Increase Crime Rates in the United States?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1379-1401, December.
    13. Alejandro Gaviria & Carlos Medina & Jorge Tamayo, 2010. "Assessing the Link between Adolescent Fertility and Urban Crime," Borradores de Economia 6860, Banco de la Republica.
    14. Demombynes, Gabriel & Ozler, Berk, 2005. "Crime and local inequality in South Africa," Journal of Development Economics, Elsevier, vol. 76(2), pages 265-292, April.
    15. Ishita Chatterjee & Ranjan Ray, 2009. "Crime, Corruption and Institutions," Monash Economics Working Papers 20-09, Monash University, Department of Economics.
    16. Altindag, Duha T., 2012. "Crime and unemployment: Evidence from Europe," International Review of Law and Economics, Elsevier, vol. 32(1), pages 145-157.
    17. Eduardo Ferraz & Rodrigo Soares & Juan Vargas, 2022. "Unbundling the relationship between economic shocks and crime," Chapters, in: Paolo Buonanno & Paolo Vanin & Juan Vargas (ed.), A Modern Guide to the Economics of Crime, chapter 8, pages 184-204, Edward Elgar Publishing.
    18. Paolo Buonanno & Daniel Montolio & Paolo Vanin, 2009. "Does Social Capital Reduce Crime?," Journal of Law and Economics, University of Chicago Press, vol. 52(1), pages 145-170, February.
    19. Justina A.V. Fischer, 2005. "The Impact of Direct Democracy on Crime: Is the Median Voter Boundedly Rational?," University of St. Gallen Department of Economics working paper series 2005 2005-14, Department of Economics, University of St. Gallen.
    20. Wolfgang Maennig & Viktoria C. E. Schumann, 2022. "Prevention Effect of News Shocks in Anti-Doping Policies," Journal of Sports Economics, , vol. 23(4), pages 431-459, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rau:journl:v:11:y:2016:i:2:p:29-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alex Tabusca (email available below). General contact details of provider: https://edirc.repec.org/data/ferauro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.