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Jurnal Ekonomi Malaysia

53 (1) 2019 105 – 119

The Economic of Deterrence: A Wrong Policy or A Misplaced Strategy?
Ekonomi Pencegahan Jenayah: Kesilapan Polisi atau Ketidaktepatan Strategi? Ekonomi Pencegahan Jenayah: Kesilapan Polisi atau Ketidaktepatan Strategi?

Department of Economics
Faculty of Economics and Business
Universiti Malaysia Sarawak
94300 Kota Samarahan
MALAYSIA

lphevan@unimas.my

Management Development Institute of Singapore (MDIS)
Level 17, (Office Tower)
No. 108, Johor Bahru City Square
106, Jalan Wong Ah Fook
80000 Johor Bahru
Johor
MALAYSIA

sitinurzahara@mdis.edu.my

Institut of Agricultural and Food Policy Studies
Universiti Putra Malaysia
43400 UPM Serdang
Selangor Darul Ehsan
MALAYSIA

Putra Business School
43400 Serdang Selangor
MALAYSIA

muzafar@putrabs.edu.my

Abstract

This paper investigates the impact of economics conditions and deterrence variables on disaggregated crime data in Sarawak, using yearly time-series data spanning more than 40 years using a vector error correction estimates. It is proven that economic variables studied serve as motivation of crime in Sarawak and imprisonment does not deter crime in the time period studied. It is evident that imprisonment in the case of Sarawak is less influential in deterring crime or the society were ill informed of the severity of punishment. While the study established a long-run relationship between economics and crime, it is also a noble approach in understanding deterrence in the context of Sarawak. Both economics and deterrence variables are important in explaining the decline in crime and in formulating efficient strategy and policies to combat crime. Government should shift the focus of increasing number of police force to increasing awareness on severity of punishments. At the same time, increasing opportunity for legal jobs would be important to deter crime.

Keywords

cointegration; crime; deterrence; economics of crime; Sarawak

Author’s Acknowledgement

The authors thank the anonymous referee and the editor for their helpful comments and suggestions on an earlier draft. The authors gratefully acknowledge the financial support from the Ministry of Higher Education (MOHE) Malaysia [FRGS grants No: F01/FRGS/1491/2016]. The usual disclaimer applies.

http://dx.doi.org/10.17576/JEM-2019-5301-9
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Lau, , Hamzah, , & Habibullah, (2019). The Economic of Deterrence: A Wrong Policy or A Misplaced Strategy?. Jurnal Ekonomi Malaysia, 53(1), 105–119. http://dx.doi.org/10.17576/JEM-2019-5301-9

@article{,
  title={The Economic of Deterrence: A Wrong Policy or A Misplaced Strategy?},
  author={Lau, Evan and Hamzah, Siti Nur Zahara and Habibullah, Muzafar},
  journal={Jurnal Ekonomi Malaysia},
  volume={53},
  number={1},
  pages={105—119},
 

year={2019},
}

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