THE EFFECT OF ECONOMIC GROWTH, UNEMPLOYMENT, POPULATION, AND POVERTY ON CRIME IN INDONESIA
DOI:
https://doi.org/10.29103/icofeb.v3i1.1291Abstract
This study examines the effect of economic growth, unemployment, population size, and poverty on crime rates in Indonesia. The research employs panel data from 15 Indonesian provinces with the highest crime rates over the period 2013–2022 and applies a fixed effect panel data regression model. The results show that economic growth and poverty have a positive and significant effect on criminality, while population size has a negative and significant effect. Meanwhile, unemployment has a negative but statistically insignificant effect on crime rates. Simultaneously, economic growth, unemployment, population size, and poverty significantly influence criminality in Indonesia. These findings indicate that economic growth alone does not necessarily reduce crime if it is not accompanied by equitable income distribution and effective poverty alleviation. This study contributes to the existing literature by providing empirical evidence from high-crime provinces in Indonesia using a panel data approach in the post-pandemic period. The results offer important policy implications for promoting inclusive economic growth, strengthening poverty reduction programs, and designing integrated crime prevention strategies.
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