Testing the Economic Theory of Crime in case of Pakistan

Abstract

In Pakistan, one of the biggest issues is crime. It has an impact on the economy in addition to society. This study's primary goal is to evaluate the economic theory of crime as it applies to Pakistan. The foremost impartial of this study were to check the relation between inflation, political stability, and income inequality with crime rate of Pakistan while implying the economic theory of crime, but regression analysis and correlation are employed to verify the impact of socioeconomic status on criminal activity. For this purpose, regression analysis was conducted. The findings of this study reveal that factors are positively associated with the dependent variable. However, the outcome of income inequality and political stability shows a negative association with crime. For this study quantitative method has been used. Furthermore, from 2004 to 2021 The Pakistan Bureau of Statistics and other sources have provided secondary data.  Additionally, E-views software was utilized to measure the instruments. This study gives evidence by testing the economic theory that people move toward crime to maximize their needs.