Does crime impede economic growth? An evidence from India

Figures & data

Table 1. Descriptive Summary of Variables

Statistics	GDP	GFCF	FDI	Exports	Enrolment	Homicide rate
Mean	10.70	14.22	10.37	13.63	17.42	1.16
Median	10.64	14.23	10.43	13.81	17.44	1.11
Maximum	11.45	15.34	12.89	14.88	17.98	1.52
Minimum	10.07	13.11	5.15	11.96	16.76	0.78
Std. Dev.	0.45	0.75	2.11	0.99	0.42	0.23
Jarque-Bera Normality test (p value)	0.32	0.26	0.16	0.24	0.27	0.43
Observations	30	30	30	30	30	30

Source: National Crime Records Bureau (NCRB), Reserve Bank of India, and Ministry of Statistics, Planning and Implementation (MOSPI). Retrieved on 22 January 2023

Table 2. Unit root tests

	Augmented Dickey-Fuller (ADF)		Phillips-Perron (PP)
Variables	Level	First Difference	Level	First Difference
	Intercept and Trend	Intercept and Trend	Intercept and Trend	Intercept and Trend
GDP	−1.83	−4.07**	−3.05	−4.08**
GFCF	−2.30	−5.18***	−2.54	−5.18***
FDI	−3.87**	−3.63***	−4.14**	−3.17**
Exports	−0.03	−4.69***	0.05	−4.66***
Enrolment	−0.65	−5.17***	−0.70	−5.17***
Homicide rate	−2.57	−5.61***	−3.21*	−5.81***

Note: The reported figures are associated t-statistic of the coefficients and the asterisks (***) are at 1% and (*) is at 10% level of significance.

Table 3. Results of Bounds test of Cointegration

Models	Optimal Lag Length	F- Statistic	Decision
FGDP (GDP/GFCF, FDI, Exports, Enrolment, Homicide)	(1, 0, 0, 0, 0, 1)	5.34***	Cointegration
FGFCF (GFCF/GDP, FDI, Exports, Enrolment, Homicide)	(1, 1, 0, 0, 0, 1)	4.15***	Cointegration
FFDI (FDI/GFCF, GDP, Exports, Enrolment, Homicide)	(1, 1, 0, 1, 0, 0)	10.29***	Cointegration
FExports (Exports/GFCF, FDI, GDP, Enrolment, Homicide)	(1, 1, 0, 0, 0, 0)	4.79***	Cointegration
FEnrol (Enrol/GFCF, FDI, Exports, GDP, Homicide)	(1, 1, 1, 1, 0, 0)	4.48**	Cointegration
FHomicide (Homicide/GFCF, FDI, Exports, Enrolment, GDP)	(1, 1, 0, 0, 0, 0)	3.41	No Cointegration

Note: The asterisks (***) are at 1% and (**) are at 5% level of significance.

Table 4. Estimated long-run coefficients from restricted error correction models

Dependent Variable	GDP	GFCF	FDI	Exports	Enrolment	Homicide rate
GDP	-	0.79***	0.01	−0.20	0.09	−0.02
GFCF	0.97***	-	−0.004	0.38***	−0.22	−0.14
FDI	8.80***	−6.66**	-	8.12***	−11.79***	1.73
Exports	1.63***	1.23***	0.07***	-	1.26***	−0.51**
Enrolment	0.62***	−0.43**	−0.04***	0.58***	-	0.14

Note: The asterisks (***) are at 1% and (**) are at 5% level of significance.

Table 5. Estimated coefficients (short run) from Error correction models

Dependent Variable	Δ GDP	Δ GFCF	Δ FDI	Δ Export	Δ Enrolment
Constant	0.14***	1.94***	49.30***	−8.85***	7.22***
Δ GDP	-	1.70***	4.15**	−1.68	0.48**
Δ GFCF	0.19***	-	−0.93	0.89***	−0.18**
Δ FDI	0.003	−0.003	-	0.07**	−0.06***
Δ Exports	−0.05	0.29**	1.21**	-	0.20***
Δ Enrolment	0.02	−0.17	−5.57***	−0.06***	-
Δ Homicide rate	−0.25***	0.42*	0.82	−0.53*	0.34
ECT (−1)	−0.24***	−0.75***	−0.47***	−1.03***	−0.77***
R-squared	0.69	0.71	0.76	0.62	0.65
F-statistic	5.34***	4.15**	10.29***	4.79***	4.48***

Note: The asterisks (***) are at 1% and (**) are at 5% level of significance.

Figure 1. CUSUM Test for Model 1.

Figure 2. CUSUMQ Test for Model 1.

Table 6. Results of Diagnostic Tests

Diagnostic Tests	Model (1)	Model (2)	Model (3)	Model (4)	Model (5)
Jarque-Bera test of Normality	0.32 (0.85)	0.35 (0.83)	1.75 (0.42)	1.32 (0.51)	2.71 (0.26)
B-G Serial correlation LM test	0.26 (0.77)	2.48 (0.09)	0.31 (0.74)	0.04 (0.95)	1.97 (0.17)
B-P-G heteroskedasticity test	1.25 (0.32)	1.19 (0.35)	0.43 (0.89)	3.04 (0.06)	0.39 (0.92)
ARCH heteroskedasticity Test	0.24 (0.62)	0.12 (0.73)	1.67 (0.21)	0.57 (0.46)	0.18 (0.67)
RESET Test	1.75 (0.10)	0.37 (0.71)	0.38 (0.71)	0.96 (0.35)	0.83 (0.42)

Values in the parentheses (.) are the associated probability values of the coefficients.

Data availability statement

Data is available through the official website of the NCRB (National Crime Records Bureau), Government of India. Retrieved data on 22 January 2023. www.ncrb.gov.in