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Terrorism and Economic Growth

Author

Listed:
  • Tahar Lassoued

    (Institut Sup rieur de Gestion de Gab s, Universit de Gab s, Tunisiea)

  • Arafet Hamida

    (Institut Sup rieur de Gestion de Gab s, Universit de Gab s, Tunisiea,)

  • Zouhaier Hadhek

    (Institut Sup rieur de Gestion de Gab s, Universit de Gab s, Tunisiea.)

Abstract

The objective of this research is to study the effect of terrorism on economic growth and the mechanisms of transmission of this effect. To do this, a model of simultaneous equations was applied to panel data for a sample of eleven countries (six developing and five developed) over the period 2008-2015. The findings of this study show the following: a positive effect of terrorism on economic growth for the whole sample as well as for the case of developing countries; a negative effect of economic growth on terrorism for the case of the total sample and the case of developing countries; and a negative effect of unemployment on terrorism for all the country samples. Furthermore, the study finds that people living in rural areas tend to engage more in terrorism that those of urban areas.

Suggested Citation

  • Tahar Lassoued & Arafet Hamida & Zouhaier Hadhek, 2018. "Terrorism and Economic Growth," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 175-178.
    • Handle: RePEc:eco:journ1:2018-01-23
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    References listed on IDEAS

    as
    1. Keefer,Philip & Loayza,Norman (ed.), 2008. "Terrorism, Economic Development, and Political Openness," Cambridge Books, Cambridge University Press, number 9780521887588, September.
    2. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    4. Blomberg, S. Brock & Hess, Gregory D. & Orphanides, Athanasios, 2004. "The macroeconomic consequences of terrorism," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 1007-1032, July.
    5. Firat Bilgel & Burhan Can Karahasan, 2019. "Thirty Years of Conflict and Economic Growth in Turkey: A Synthetic Control Approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(5), pages 609-631, July.
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    More about this item

    Keywords

    Terrorism; Economic growth; Simultaneous equations.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

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