Abstract
The decline in economic growth, which is offset by the increasing number of people and the lack of availability of jobs, has caused more people to be affected and involved in non-crime activities based on the crime rate (CR). This study aims to analyze the effect of crime rates on provincial economic growth in Indonesia in 2011-2020. The variables used are economic growth, crime rates, investment, labor, and initial growth. The method used is the Fixed Effect Model. The results show that the higher the crime rate impacts the decline in economic growth, further increase in investment and labor will encourage economic growth. In contrast, the initial growth shows that the economy of poor provinces grows slower than rich provinces.
Highlights
Crime is an unacceptable phenomenon in society
The crime rate has a significant and negative effect on the economic growth of provinces in Indonesia. This shows that an increase in the crime rate will reduce economic growth, investment and labor have a significant and positive effect on economic growth
Because if the crime rate in an area is high, it will disrupt the running of the business and investment environment, which results in doubts in making investments in that region, which means it can reduce economic growth in a region or country
Summary
Crime is an unacceptable phenomenon in society. The history of crime begins with the origin of human history in this world. There is no universal and permanent definition of crime. The tendency of individuals to commit crimes can be seen from a biological perspective, a sociological perspective, and other perspectives. This science gives two meanings to crime, namely juridically and sociologically. Bonger (Kummar, 2013) argues that crime means a social cycle that consciously receives a reaction from the state in the form of suffering and reacts to legal definitions regarding crime. Crime is human behavior created by society
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