The socioeconomic determinants of crimes rate: a country panel evidence

Abstract

The study considers the socioeconomic factors that impact on general crime rate and specific crimes rates. Since Becker (1968), many researchers have surveyed this topic; however most of them using domestic data source and the findings are discussing. This thesis aims to find the social and economic determinants by using global 56 selected countries data set and updated 2003-2010 period. While crime variables are collected from the United Nations Office on Drugs and Crimes (UNODC) in 2010, socioeconomic variables are collected from World Development Indicators (WDI), World Bank (WB) in 2011. In order to get the goals of the study, several econometric models are used including Pooled Ordinary Least Squared (Pooled OLS), Fixed Effects Model (FEM) and Random Effects Model (REM). The study has found that (i) GDP per capita growth, urbanization, ratio of labor participation and the ratio of military expenditure are the socioeconomic factors affecting crime rate; (ii) the socioeconomic determinants can explain 46.64% of changing of crime rate; (iii) property crimes, violent crimes and drugs related crimes are explained well by socioeconomic components; but not with sexual crimes. In general, the research suggests that the socioeconomic factors are important determinants of crime rate.