FUW TRENDS IN SCIENCE & TECHNOLOGY JOURNAL
(A Peer Review Journal)
e–ISSN: 2408–5162; p–ISSN: 2048–5170
keywords: Co-integration, unit root, unemployment, crime
This study focuses on the determination of the relationship between Unemployment rate and Crime rate in Nigeria. Data on crime rate and unemployment rate were collected from National Bureau of Statistics 1995 to 2012. We used co-integration to determine if there exist a long run relationship between unemployment rate and crime rate. Granger causality was also applied to know if unemployment granger cause crime or verse versa. Using Eview version 7, we discovered from the unit root test (ADF) result that the variables under consideration were co-integrated of the same order at I(1). The co-integrated results showed that there is a long run relationship between unemployment rate and crime rate in Nigeria which implies that both variables move together in a long run. The result of granger causality test showed that there is a unidirectional since unemployment granger cause crime within the study period since the p_value of 0.03575 is less than alpha level of 0.05. The result indicates that unemployment rate must be reduced in order to curtail crime.
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