When two nations are economically equal but one has a greater crime rate than the other, the GDP level of the nation with the higher crime rate will be lower.
It might be important to note right away that the GDP does not account for the crime. A forced and unlawful redistribution occurs if someone takes from me, yet GDP only counts what is generated. The GDP already accounts for both governmental and private spending on deterring or punishing crime.
The coefficient found for the single regression model of crime rates and GDP per capita was statistically significant at the 1% level and positive, indicating that crime rates should rise by 8.113 for every 1000 dollars of increased GDP per capita.
Economic theory predicts that as opportunities and economic progress increase, crime should decline. That's because when legal means of making money get more lucrative, the incentive to engage in illicit behavior declines.
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