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THE IMPACT OF CRIME RATE ON ECONOMIC PERFORMANCE IN GHANA

Journal: Academic Research International (Vol.5, No. 1)

Publication Date:

Authors : ;

Page : 227-236

Keywords : Economic Performance; Cointegration; Crime Rate;

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Abstract

The study examined the impact of crime rate on the economic performance in Ghana using vector autoregressive approach. It was found that both the variables nominal GDP per capita and crime rate are integrated at first order. The results of Johansen's cointegration test indicated that short run relationship exit between both variables. It was found out that the correlation coefficient between economic performance and crime rate was negative 0.7826 and significant. The previous record of crime rate had significantly negative impact on the current economic performance and it was elastic. Granger Causality Test also, showed that crime rate Granger caused economic performance to decline. This showed that reducing crime rate in Ghana will improve economic performance. As a result, it was recommended that crime should be discourage through all means and control to the barest minimum for improvement in economic performance.

Last modified: 2014-02-21 20:21:04