THE IMPACT OF REMITTANCES ON CRIME RATE: A CASE STUDY OF PAKISTAN

Abstract

This study investigates the relationship between remittances and crime in Pakistan from 1980 to 2020, employing econometric techniques such as the Augmented Dickey-Fuller test and Juselius methodology. Three models were developed to analyze how remittances interact with economic and socio-economic variables (inflation, income inequality, unemployment, education) to influence crime. The findings reveal a direct, robust long-term relationship between remittances and increased crime. Economic factors like inflation and inequality consistently correlate positively with crime, while education generally shows an inverse relationship. However, in the presence of unemployment (third model), education paradoxically associates positively with crime, possibly reflecting frustration among educated individuals lacking opportunities. The study emphasizes improving income distribution, reducing unemployment, and creating targeted job policies for educated youth to mitigate crime. It advocates for equitable economic growth to enhance social stability and reduce criminal activities in Pakistan.

Keywords:Crime rate, Remittances, Socio-Economics, Pakistan & nbsp