Volume 18, Issue 68 (3-2018)                   refahj 2018, 18(68): 137-165 | Back to browse issues page

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Pourehtesham M, Mohaddasi Far M. (2018). Relationship between Crime, Fertility Rates and Economic Growth. refahj. 18(68), : 4
URL: http://refahj.uswr.ac.ir/article-1-3181-en.html
Abstract:   (3963 Views)
Introduction: Due to the growing extent of crimes in different countries, particularly developing countries and the adverse socio-economic effects of governments, the issue of crime can be taken seriously. Nowadays one of the main goals of governments has always been to achieve economic development and growth. On the one hand, the existence of strict rules and regulations, the existence of security and the absence of crime in the community are the cause of economic growth and development.
On the other hand, achieving sustainable development and ensuring stability and security, regardless of social welfare is not possible. Actually, factors such as urbanization rate, unemployment, education and human capital are the causes of crime and provide conditions for economic deterioration.. Increased crime is one of the issues that is considered as a red line and various states depending on their attitudes and how they manage the affairs of their countries, react differently. As these crimes are increasing, security costs are rising due to an increase in the number of law enforcement personnel, increased spending on military, judicial budgets, which is itself an obstacle to allocating government funds to manufacturing and industrial sectors, which is itself a factor in economic growth. The main purpose of this study is to investigate the effect of crime and fertility rates on economic growth.
Method: In this study, to extract the experimental results, panel data was used. The choice of this method, on the one hand, is due to the lack of access to disorder and crime data over a long period of time, and the inability to use time series models and, on the other hand, due to the advantages of the panel data method, as frequently cited in the existing literature. The estimation of the time series data model during the 20-year period 1996-2015 was done using Eviews8 software.
Finding: The crime criteria (murder, cruel crimes and theft) have a negative significant impact on economic growth. This is the case when the more the number of the crimes, the lesser the prosperity and flourishing production can be expected in business. The unemployment rate has a negative impact on economic growth, which also helps to increase crime. On the other hand, fertility rates have a positive impact on economic growth. As population aging and declining active population growth, these countries are trying to grow their population by raising fertility rates. The savings rate has a positive and significant impact on economic growth. The political stability index is expected to have a significant positive impact on economic growth. In such countries, because of the security situation in the region and the countries which have limited conditions, it might be though by politicians that political stability in these countries is maintained, however the government might close the views unilaterally and without criticism and accountability which this might have a negative impact on economic growth.
Discussion: The relationship between crime and economic growth is important in several respects: First, On the one hand, poor economic growth is linked to a high level of crime. Also, one of the major goals of governments is promoting security, justice, freedom and human dignity which is dependent on the establishment of appropriate laws and regulations and to comply with the rules and if there are any problems in the development and economic growth, this could cause more crime and hinder the economic development. Hence, considering the impact of crime along with other socio-economic factors, can help policymakers and managers in this regard. Due to the negative impact of crime on economic growth and its significant coefficient, it can be said that this is a waste of public resources to make the justice and judicial centers (training judges and other judicial agents) and other expenses that are in line with protective factors to reduce crime and rehabilitate prisoners after committing the crime by the prisoners. Such expenses can be devoted to research, development, growth and prosperity and turning the wheels of the economy and in effect increasing employment. Such cases can only be applied with methods such as promoting cultural awareness via bringing high costs mapped on the consequences of doing the crimes, the consequences can be reduced to the public especially for the youth.
Article number: 4
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Type of Study: orginal |
Received: 2018/08/21 | Accepted: 2018/08/21 | Published: 2018/08/21

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