Crime control in Nigeria: how relevant is remittance inflow?
| Date | 27 June 2020 |
| DOI | https://doi.org/10.1108/JMLC-05-2020-0058 |
| Pages | 187-200 |
| Published date | 27 June 2020 |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Folorunsho M. Ajide |
Crime control in Nigeria: how
relevant is remittance inflow?
Folorunsho M. Ajide
Department of Economics, University of Ilorin, Ilorin, Nigeria
Abstract
Purpose –This paper aims to draw on extant literatureto ascertain the relevance of remittance receipts in
improvingthe level of crime control in Nigeria.
Design/methodology/approach –The study uses time seriesdata spanning for a period of 1986–2017.
It adopts dynamic ordinaryleast square (DOLS), vector auto regression impulse responsefunction, variance
decompositionand Toda and Yamamoto causality approach to analyse the data.
Findings –The following findings are established: DOLS shows that remittance receipt hasnegative and
significant impact on crime ratein Nigeria. The impulse response function indicates that a positive shock to
the remittance inflows reduces the level of crime in Nigeria. Moreover, a positive shock to the crime rate
decreases the remittance. This implies that both variables respond to each other. Toda and Yamamoto
causality approach shows that there is unidirectional causality moving from remittance inflow to criminal
activities in Nigeria. These results persist after considering other institutional variables. These findings
support theprevious evidences on remittances-crimenexus and as well support the opportunitycost theory of
crime.
Originality/value –Apart from being the first study in African region that evaluates the relevance of
remittances in crime control,it also analyses the dynamics between crime rate and remittance receiptsusing
time series econometricswhich makes the study to be unique. The study showsthat remittances can be used
as part of toolkits for controllingcriminal activities in Nigeria.
Keywords Remittances, Social control, Crime control, Policy tools
Paper type Research paper
1. Introduction
Answering the question whether remittance receipt is relevant in crime control is derived
from theoretical preposition with empirical backing. Firstly, the relationship between
remittances and crime rate has a theoreticalbasis from the opportunity cost theory of crime
(Becker, 1995;Brito et al.,2014). It has been well established that an increase in future
streams of either earned or unearned incomes can increase the opportunity cost of crime,
thereby reducing the motivation to commit crimes. Remittance is another source of income
accrued to households that may be used for individuals’educational advancement and
entrepreneurial activities which further increases potential income and earning capacity
(Lochner, 2011). This means that increase in remittance would lead to an increase in
economic resources to an individual thereby reducing poverty level and finally reduce the
crime related activities in a nation (Mahesh, 2020). Based on this line of augment, studies
empirically analyse the impact of remittance receipt on crime behaviour (Brito et al., 2014;
Asghar et al.,2016;Mahesh, 2020). The major submission is that the impact of remittances
on crime rate varies which depends on the type of crime, the extent of social control and
economic conditionsof a country.
In this study, we examine the dynamics and remittances receipt impact on crime rate in
Nigeria for a period of 1986-2017. The study provides insights on how remittance inflow
impacts crime behaviour in an African nation (Nigeria). It advances our understanding on
Crime control
in Nigeria
187
Journalof Money Laundering
Control
Vol.24 No. 1, 2021
pp. 187-200
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-05-2020-0058
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