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Crime and income inequality: the case of Malaysia


Abdul Hamid, Baharom and Habibullah, Muzafar Shah (2009) Crime and income inequality: the case of Malaysia. Journal of Politics and Law, 2 (1). pp. 55-70. ISSN 1913-9047; ESSN: 1913-9055


This paper examines the causality between income inequality and crime in Malaysia for the period 1973-2003. Autoregressive Distributed Lag (ARDL) bounds testing procedure is employed to (1) analyze the impact of income inequality on various categories of criminal activities as well as to (2) analyze the impact of various categories of criminal activities on income inequality. Interestingly our results indicate that income inequality has no meaningful relationship with any of the various categories of crime selected, such as total crime, violent crime, property crime, theft and burglary. Crime exhibits neither long-run nor short run relationships with income inequality and they are not cointegrated. It cannot be denied that there is ambiguity in the empirical studies of crime economics regarding various income variables leading to often mixed and contradicting results, which might be a good explanation of this finding.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
DOI Number: https://doi.org/10.5539/jpl.v2n1p55
Publisher: Canadian Center of Science and Education
Keywords: Malaysia; Bounds testing; Crime; Income inequality
Depositing User: Nabilah Mustapa
Date Deposited: 08 Jun 2016 04:16
Last Modified: 08 Jun 2016 04:16
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.5539/jpl.v2n1p55
URI: http://psasir.upm.edu.my/id/eprint/17100
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