An Analysis of Economic Determinants and Crime in Selected Gauteng Local Municipalities

Abstract

The relationship between macroeconomic objectives and crime is intertwined and cannot be overemphasized. This subject has created an endless debate and at the centre of this debate is what causes the other? In contributing to this academic debate, the current study investigates the impact of macroeconomic objectives on crime. Furthermore, the study examined the question “what causes the other?”. In achieving these two aims, the study employed a Pooled Mean Group and the Granger Causality analysis from 1996–2019. The Pooled Mean Group results reveal that poverty and inequality are the main causes of crime in the Gauteng province. On the other hand, economic growth, education and employment reduces crime. Since Gauteng is the economic harbor of Africa, many jobs should be created therein to reduce poverty and inequality that have a negative impact on crime.