IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v37y2015i6p1065-1080.html
   My bibliography  Save this article

The economic impact of terrorism: A new model and its application to Pakistan

Author

Listed:
  • Estrada, Mario Arturo Ruiz
  • Park, Donghyun
  • Kim, Jung Suk
  • Khan, Alam

Abstract

This paper introduces a new economic model to analyze the effects of a possible terrorist attack, namely the terrorist attack vulnerability evaluation model (TAVE-Model). The model analyzes three different phases of terrorism: (i) origins of a terrorist attack; (ii) terrorist attack itself; and (iii) post-attack effects. In addition, the TAVE-Model identifies economic desgrowth (−δ), intensity of terrorist activities (αi), terrorist attack losses (−π), economic wear (Π), level of terrorist attack tension (ζ), level of terrorist attacks monitoring (η), and total economic leaking (Ωt) under a terrorist attack. Finally, we apply the TAVE-Model to Pakistan, a country where terrorism poses a significant socio-economic risk. More specifically, we use the model to assess the relationship between terrorism and the economic performance of Pakistan.

Suggested Citation

  • Estrada, Mario Arturo Ruiz & Park, Donghyun & Kim, Jung Suk & Khan, Alam, 2015. "The economic impact of terrorism: A new model and its application to Pakistan," Journal of Policy Modeling, Elsevier, vol. 37(6), pages 1065-1080.
  • Handle: RePEc:eee:jpolmo:v:37:y:2015:i:6:p:1065-1080
    DOI: 10.1016/j.jpolmod.2015.08.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S016189381500085X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Keynes, John Maynard, 1919. "The Economic Consequences of the Peace," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number keynes1919.
    2. Estrada, Mario Arturo Ruiz & Yap, Su Fei, 2013. "The origins and evolution of policy modeling," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 170-182.
    3. Landes, William M, 1978. "An Economic Study of U.S. Aircraft Hijacking, 1961-1976," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 1-31, April.
    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. Ruiz Estrada, Mario Arturo & Park, Donghyun, 2008. "Korean unification: How painful and how costly," Journal of Policy Modeling, Elsevier, vol. 30(1), pages 87-100.
    6. repec:cup:apsrev:v:77:y:1983:i:01:p:36-54_24 is not listed on IDEAS
    7. Ismail, Aisha & Amjad, Shehla, 2014. "Determinants of terrorism in Pakistan: An empirical investigation," Economic Modelling, Elsevier, vol. 37(C), pages 320-331.
    8. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:spr:qualqt:v:51:y:2017:i:3:d:10.1007_s11135-016-0336-z is not listed on IDEAS
    2. Ruiz Estrada, Mario Arturo & Koutronas, Evangelos, 2016. "Terrorist attack assessment: Paris November 2015 and Brussels March 2016," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 553-571.
    3. repec:spr:qualqt:v:52:y:2018:i:5:d:10.1007_s11135-017-0660-y is not listed on IDEAS
    4. repec:spr:qualqt:v:52:y:2018:i:2:d:10.1007_s11135-017-0494-7 is not listed on IDEAS
    5. repec:spr:qualqt:v:52:y:2018:i:4:d:10.1007_s11135-017-0549-9 is not listed on IDEAS
    6. Bukhari, Naseem & Masih, Mansur, 2016. "An empirical investigation of causal linkages between domestic terrorism and macroeconomic variables: a case for Pakistan," MPRA Paper 69768, University Library of Munich, Germany.
    7. repec:eee:ecanpo:v:60:y:2018:i:c:p:78-88 is not listed on IDEAS
    8. Alam Khan & Zarinah Yusof, 2017. "Trade–Terrorist Evaluation Index (TTEi)," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 365-375, January.

    More about this item

    Keywords

    Terrorism; Economic modeling; Economic desgrowth; Policy modeling; Pakistan;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:37:y:2015:i:6:p:1065-1080. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.