The Relationship Among the Unemployment Rate, Inflation and Child Abuse Rate in Malaysia

This paper attempts to shed some lights on the relationship among inflation, unemployment rate and child abuse rate in Malaysia by using data period of 1982 to 2011. This study employs ADF and PP test, Johansen co-integration test and causality test to seek for relationship among the variables. ADF and PP test show all variables are non- stationary in level and stationary in first difference. The Johansen co-integration test explains that the inflation rate and unemployment rate are correlated with the child abuse rate in the long run. The vector error correction model reveals an increase in unemployment rate causes the child abuse rate to increase in the short and long run. The causality test seems to run from the unemployment rate to child abuse rate. However, the findings show that no causality is found between the inflation rate and the child abuse rate. It is hope that the findings will assist Malaysian government to lessen the child abuse rate by controlling the unemployment rate at a minimum rate.