This study is designed to investigate the relationship between crime and various economic indicators such as unemployment, poverty and inflation in Pakistan. The study covers the period for 1975-2007. The stationary properties of the time series data are examined by using Augmented Dickey-Fuller (ADF) test. Johansen Maximum Likelihood Cointegration and Granger Causality tests are applied to find out long-run relationship along with causality among the variables. The findings of the tests provide evidence of the existence of long-run cointegration relationship among crime, unemployment, poverty and inflation. The Granger causality has been tested through Toda-Yamamoto procedure. The causality results show that crime is Granger caused by unemployment, poverty and inflation in Pakistan.

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