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Brutality or Frequency?. An Empirical Investigation of the Effects of Terrorism on Economic Growth in India

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  • K. Peren Arin
  • Fabio Spagnolo
  • Nicola Spagnolo

Abstract

In this paper we investigate the effects of terrorism on economic growth in India. Using a Markov switching model, we find evidence that terror has a significant and negative impact on Indian economic growth. Our empirical results also show that the magnitude of these effects is larger in periods of high growth. Finally, we compare the magnitude of the effects of the ?brutality? and the ?frequency? of terror attacks, and conclude that the effect of the frequency is slightly higher than the effect of the brutality.

Suggested Citation

  • K. Peren Arin & Fabio Spagnolo & Nicola Spagnolo, 2016. "Brutality or Frequency?. An Empirical Investigation of the Effects of Terrorism on Economic Growth in India," Revue économique, Presses de Sciences-Po, vol. 67(6), pages 1141-1151.
    • Handle: RePEc:cai:recosp:reco_pr2_0073
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