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Impact of Terrorism on Economic Growth in South Asian Country

Author

Listed:
  • Qasim Saleem

    (GIFT Business School, GIFT University Gujranwala, Pakistan)

  • Sidra Sidra

    (Department of Punjab Education, GIFT Business School, GIFT University, Gujranwala, Pakistan,)

  • Abdur Rauf

    (GIFT Business School, GIFT University Gujranwala, Pakistan)

  • Hafiz Muhammad Abubakar Siddique

    (Department of Economics, Abbottabad University of Science and Technology, Pakistan.)

Abstract

The association among terrorism and economic growth is crucial from macroeconomics perspective. This analysis is carried out to extract the influence of terrorism on economic growth in Pakistan, incorporating trade, foreign aid and capital for the period of 1981 to 2016. This study applied ARDL bounds testing to inquire the problem and found a co-integration nexus among the used macroeconomic indicators. The evidence shows that terrorism has an inverse relationship with economic growth that is statistically significant. Terrorism may cause to create insecurity and devastating recreational places. There is need to resolve the issue of terrorism to enhance the ability of other economic indicators which cause to enhance the growth of Pakistan.

Suggested Citation

  • Qasim Saleem & Sidra Sidra & Abdur Rauf & Hafiz Muhammad Abubakar Siddique, 2020. "Impact of Terrorism on Economic Growth in South Asian Country," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 185-191.
    • Handle: RePEc:eco:journ1:2020-04-22
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    References listed on IDEAS

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    Cited by:

    1. Abdur Rauf & Hafiz Muhammad Abubakar Siddique & Qasim Saleem & Sidra, 2020. "Terrorism and International Tourism Nexus: Evidence from Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 387-393.

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    More about this item

    Keywords

    Terrorism; Trade; Foreign Aid; ARDL;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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