IS THERE A CAUSALITY RELATIONSHIP BETWEEN LAW ENFORCEMENT, CRIME RATES, AND ECONOMIC GROWTH? AN EMPIRICAL EVIDENCE FROM WESTERN INDONESIA

Syarifuddin HASYIM

Senior Lecturer, Faculty of Law, Universitas Syiah Kuala, Banda Aceh, Indonesia

syarifuddin_hasyim@unsyiah.ac.id

Muhammad ZULHILMI

Senior Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda Aceh, Indonesia

muha.zul@gmail.com

Khairul AMRI

Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry,

Banda Aceh, Indonesia

khairul.amri@ar-raniry.ac.id

(corresponding author)

Abstract

The economic impact of law enforcement and crime rates empirically has not been widely revealed by researchers. In fact, in general, economic activities can be related to security factors. This study analyzes the influence of law enforcement and crime on economic growth. Using a panel data set of 8 provinces from western Indonesia during the period 2006-2017, the study found that there were no long-run relationships between the three variables. In the short-run, law enforcement and crime rates have a positive and significant effect on economic growth. Law enforcement has a significant and negative effect on crime rates, and vice versa crime rates have a positive and significant effect on law enforcement. The results of the Granger causality test indicate the existence of bidirectional causality between crime rates and law enforcement and between law enforcement and economic growth. Furthermore, unidirectional causality exists running from crime to economic growth.

Keywords: Economic Growth, Law Enforcement, Crime Rates, Panel Vector Autoregressive, and Granger Causality Test.

JEL classification: K14, K42, O47
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ANALYSIS ON TRAVEL EXPENDITURE BY OCCUPATION FOR JAPAN DOMESTIC TRAVEL

Kenichi SHIMAMOTO

Associate Professor, Hirao School of Management, Konan University, Japan

ken_japan51@hotmail.com

Abstract

There is growing interest in the travel market with its significant impact on the economy and society. This paper attempts to provide some insight to the Japan domestic travel market by analysing the travel related purchasing behaviour by occupation. It examines travel related expenditure covering five consumption items for domestic travel with and without overnight stays by Japan residents. The occupations examined are management; professionals and engineers; administration; retail, service and security; agriculture, lumbering, fishing; manufacturing, transport, construction, field work; housewives; students; retired and unemployed. The results find that the greatest difference by occupation is the partiality agriculture, lumbering and fishing and housewives have towards package tours, holidays and vacation for travel with and without overnight stays. Concerning travel with overnight stays, management, professionals and engineers exhibited similar purchasing behaviours and for travel without overnight stays, professionals, engineers, administration retail, service and security displayed similar preferences. Students showed an exceptionally strong partiality towards entrance and attraction expenditure when travelling without overnight stays. Another significant result is the weak preference by management for travel gifts and shopping. The purchasing behaviour of manufacturing, transport, construction and field work were the closest to the average traveller.

Keywords: occupation, travel expenditure, consumption item, Japan domestic overnight travel

JEL classification: J10, Z30, Z33
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ASSESSING THE STRUCTURAL CHANGES IN THE GREEK ECONOMY FOR THE PERIOD PRIOR TO ECONOMIC CRISIS

Triantafyllos PNEVMATIKOS

PhD in Planning and Regional Development, University of Thessaly

trpnevmatikos@gmail.com

Serafeim POLYZOS

Professor, University of Thessaly, Department of Planning and Regional Development

spolyzos@uth.gr

Dimitrios TSIOTAS

Adjunct Lecturer, University of Thessaly, Department of Planning and Regional Development

tsiotas@uth.gr

Abstract

The process of economic growth is directly related to structural changes, the study of which has been the subject of research for many decades and it allowed detecting the dynamics affecting national and regional economies over  time. Especially for the policy makers, the in-depth understanding of inter-sectorial linkages and of the structural changes existing in national or regional economics is increasingly important for the planning of effective economic policies leading to economic development and to the improvement of competitiveness and productivity. Within this context, this paper studies the inter-sectorial linkages in the Greek economy by using a combined approach based on input-output modeling and on causative matrix analysis. The purpose of the analysis is to detect the structural changes in Greece at the period prior to economic crisis (2000-2010), which is an important period because, at that time, the economic structure of the country have been proven deficient to successfully deal with the crisis that followed. The analysis shows that the majority of the productivity sectors (impressively) witnessed an increase in their gross output at that time, that the most significant changes induced in the tertiary sector, where technical changes were fewer than those captured due to change in final demand, and that the effects of final demand are increasingly individually internalized. The overall approach aspires to learn from a crucial period leading to an economic crisis, under a structural perspective of the Greek economy.

Keywords: structural changes, input-output analysis, multipliers, Greek economy.

JEL classification: Q33, Q40, Q41
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