Does the Quality of Governance Affect Crime Rates? Evidence from European Countries

Abstract

The importance of governance quality in various spheres has been extensively documented in the relevant literature. Studies have shown that the levels of criminality are affected by the quality of government institutions and law enforcement agencies. Using the six governance indicators developed by the World Bank and unemployment rates this paper examines whether the quality of governance and unemployment affect criminal activity and crime rates. The issue at hand is examined for a panel of thirty-two European countries for which consistent data on crime rates are available. The empirical investigation spans the period 2008-2021. Findings reported herein, indicate that quality of governance does not affect crime rates in the case of Europe, with the exception of “political stability and no violence” index when it comes to the serious assaults recorded incidents.