Role of institution in combating crime in India: an empirical study

Abstract

PurposeThis paper examines the role of institution in the combating crime in India. This study also assesses institutions for controlling property crime in India in the post-reform era.Design/methodology/approachCrime and socio-economic data are taken from National Crime Record Bureau and the Reserve Bank of India, respectively. Twenty major Indian states are selected for the study purpose for the period of 1994–2019. Fixed effect panel data technique is used for analysis purpose.FindingsProperty crime rate declines with economic growth, while it increases with financial development. Findings of fiscal policy instruments are different. Own tax is positively associated with property crime in India, while non-tax fiscal instruments such as fine, penalty, and so on, are inversely related to it. Property crime rate is inversely related to institutional factors like charge sheet and conviction rate.Research limitations/implicationsFurther research is needed for other crimes in India. State-level data are used here for analysis purpose; however, spatial or cluster analysis techniques might provide more insights for combating crimes in India.Practical implicationsThis study suggests that economic growth and fiscal instrument along with institutional development are essential to control property crime in India.Social implicationsGovernment should take steps to improve the law-and-order system to control property crime across states.Originality/valueImpact of non-tax fiscal instrument reduces property crime while that of own tax is increases it in India. These findings are unique and added certain insight in the study. Institutional roles are captured its performances like charge sheet and convict rate, which are significantly reduce property crime in Indian states. Least square dummy variable model is applied to capture individual state effects.Peer reviewThe peer review history for this article is available at:https://publons.com/publon/10.1108/IJSE-01-2023-0063