Economic Clues to Crime: Insights from Mongolia

This paper examines the dynamic relationship between economic indicators, law enforcement mechanisms, and property-related crimes in Mongolia using a time-series econometric approach. Relying on the theoretical frameworks of Becker’s economic model of crime and Cantor and Land’s motivation–opportuni...

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Main Authors: Dagvasuren Ganbold, Enkhbayar Jamsranjav, Young-Rae Kim, Erdenechuluun Jargalsaikhan
Format: Article
Language:English
Published: MDPI AG 2025-06-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/13/6/160
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author Dagvasuren Ganbold
Enkhbayar Jamsranjav
Young-Rae Kim
Erdenechuluun Jargalsaikhan
author_facet Dagvasuren Ganbold
Enkhbayar Jamsranjav
Young-Rae Kim
Erdenechuluun Jargalsaikhan
author_sort Dagvasuren Ganbold
collection DOAJ
description This paper examines the dynamic relationship between economic indicators, law enforcement mechanisms, and property-related crimes in Mongolia using a time-series econometric approach. Relying on the theoretical frameworks of Becker’s economic model of crime and Cantor and Land’s motivation–opportunity hypothesis, the study explores the effects of unemployment, detection probability, and incarceration rates on four crime categories: total crime, theft, robbery, and fraud. An error correction model (ECM) is employed to capture both short-run fluctuations and long-run equilibrium relationships over the period 1992–2022. The empirical findings reveal that detection rates exert a statistically significant deterrent effect on robbery in the short term, while incarceration rates are effective in reducing theft. Unemployment shows a positive and significant long-run effect on theft prior to 2009 but weakens thereafter due to methodological changes in labor statistics. Fraud demonstrates a distinct response pattern, exhibiting negative associations with both incarceration and unemployment, and showing no sensitivity to detection probability. Diagnostic tests support the model’s robustness, with heteroskedasticity in the theft model addressed using robust standard errors. This study contributes to the literature by providing the first country-specific empirical evidence on crime determinants in Mongolia. It highlights the heterogeneous impact of economic and institutional factors on different crime types in a transition economy. The findings underscore the need for integrated policy responses that combine improvements in law enforcement with inclusive economic and social development strategies.
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spelling doaj-art-dbdf85c44cfc400db12f4e8cff7a0cbd2025-06-25T13:44:15ZengMDPI AGEconomies2227-70992025-06-0113616010.3390/economies13060160Economic Clues to Crime: Insights from MongoliaDagvasuren Ganbold0Enkhbayar Jamsranjav1Young-Rae Kim2Erdenechuluun Jargalsaikhan3Department of Fundamental Science, University of Finance and Economics, BZD 3rd Street, Peace Avenue-5, Ulaanbaatar 13381, MongoliaDepartment of Applied Mathematics, National University of Mongolia, Ikh Surguuliin Gudamj-1, Ulaanbaatar 14201, MongoliaDepartment of Fundamental Science, University of Finance and Economics, BZD 3rd Street, Peace Avenue-5, Ulaanbaatar 13381, MongoliaDepartment of Fundamental Science, University of Finance and Economics, BZD 3rd Street, Peace Avenue-5, Ulaanbaatar 13381, MongoliaThis paper examines the dynamic relationship between economic indicators, law enforcement mechanisms, and property-related crimes in Mongolia using a time-series econometric approach. Relying on the theoretical frameworks of Becker’s economic model of crime and Cantor and Land’s motivation–opportunity hypothesis, the study explores the effects of unemployment, detection probability, and incarceration rates on four crime categories: total crime, theft, robbery, and fraud. An error correction model (ECM) is employed to capture both short-run fluctuations and long-run equilibrium relationships over the period 1992–2022. The empirical findings reveal that detection rates exert a statistically significant deterrent effect on robbery in the short term, while incarceration rates are effective in reducing theft. Unemployment shows a positive and significant long-run effect on theft prior to 2009 but weakens thereafter due to methodological changes in labor statistics. Fraud demonstrates a distinct response pattern, exhibiting negative associations with both incarceration and unemployment, and showing no sensitivity to detection probability. Diagnostic tests support the model’s robustness, with heteroskedasticity in the theft model addressed using robust standard errors. This study contributes to the literature by providing the first country-specific empirical evidence on crime determinants in Mongolia. It highlights the heterogeneous impact of economic and institutional factors on different crime types in a transition economy. The findings underscore the need for integrated policy responses that combine improvements in law enforcement with inclusive economic and social development strategies.https://www.mdpi.com/2227-7099/13/6/160crimeunemploymentlaw enforcementMongoliatime-series analysiserror correction model
spellingShingle Dagvasuren Ganbold
Enkhbayar Jamsranjav
Young-Rae Kim
Erdenechuluun Jargalsaikhan
Economic Clues to Crime: Insights from Mongolia
Economies
crime
unemployment
law enforcement
Mongolia
time-series analysis
error correction model
title Economic Clues to Crime: Insights from Mongolia
title_full Economic Clues to Crime: Insights from Mongolia
title_fullStr Economic Clues to Crime: Insights from Mongolia
title_full_unstemmed Economic Clues to Crime: Insights from Mongolia
title_short Economic Clues to Crime: Insights from Mongolia
title_sort economic clues to crime insights from mongolia
topic crime
unemployment
law enforcement
Mongolia
time-series analysis
error correction model
url https://www.mdpi.com/2227-7099/13/6/160
work_keys_str_mv AT dagvasurenganbold economiccluestocrimeinsightsfrommongolia
AT enkhbayarjamsranjav economiccluestocrimeinsightsfrommongolia
AT youngraekim economiccluestocrimeinsightsfrommongolia
AT erdenechuluunjargalsaikhan economiccluestocrimeinsightsfrommongolia