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The Effects of the Human Cost of Terror on National Income, Private Consumption and Investment in Pakistan

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  • Syed Hasanat Shah
  • Hafsa Hasnat
  • Mohsin Hasnain Ahmad

Abstract

The main focus of this article is to investigate the short- and long-run causal effects of human cost of terror on gross domestic product (GDP), private consumption and private investment in Pakistan by using autoregressive distributed lag techniques. The results confirm the long-run association between the human cost of terror, GDP, private consumption and private investment and suggest that the human cost of terror adversely affects GDP and private investment, and positively influences private consumption in the long run. Furthermore, the results in the study reveal that the human cost of terror negatively affect GDP and private investment and increases private consumption in the short run. The overall findings of the article suggest that the human cost of terror drags the economy down, discourages private investment and distorts the pattern of private consumption in Pakistan.

Suggested Citation

  • Syed Hasanat Shah & Hafsa Hasnat & Mohsin Hasnain Ahmad, 2016. "The Effects of the Human Cost of Terror on National Income, Private Consumption and Investment in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(2), pages 216-235, September.
  • Handle: RePEc:sae:soueco:v:17:y:2016:i:2:p:216-235
    DOI: 10.1177/1391561416637165
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    References listed on IDEAS

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    Cited by:

    1. Syed Hasanat SHAH & Hafsa HASNAT* & Sarath DELPACHITRA***, 2019. "Did the WTO Promote Growth, Trade and Foreign Direct Investment in South Asia?," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 29(2), pages 165-179.
    2. Zhen An, 2019. "Migration Policy Uncertainty and Terrorist Attacks: Evidence from the US," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 4(1), pages 44-56, March.

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    More about this item

    Keywords

    Human cost of terror; Diyat; lifetime earning; national income; private consumption; ARDL model; Pakistan;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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