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The effects of terrorism on economic growth:Panel data approach

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  • Mehmet Çinar

    (Faculty of Economics and Administrative Sciences, Department of Econometrics, Uludag University, Bursa, Turkey)

Abstract

The aim of this study is to examine the effects of terrorism on economic growth experienced worldwide. More precisely these terrorist incidents and its effects on economic growth in most countries are classified according to income groups. In this respect, we conduct a panel study (FE and RE models) to analyze the number of terrorist incidents in these countries and the data range from 2000 to 2015 covering a total of 115 countries. The result of the study is in line with other findings in the literature. Those terrorist attacks are causing a negative impact on the economic growth in most countries, particularly in low-income countries. Generally speaking, the findings show that low-income countries are affected about three times more than high-income countries as a result of these terrorist attacks.

Suggested Citation

  • Mehmet Çinar, 2017. "The effects of terrorism on economic growth:Panel data approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 35(1), pages 97-121.
    • Handle: RePEc:rfe:zbefri:v:35:y:2017:i:1:p:97-121
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    References listed on IDEAS

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    Cited by:

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    2. Destek, Mehmet Akif & Manga, Müge & Cengiz, Orhan & Destek, Gamze, 2022. "Investigating the potential of renewable energy in establishing global peace: Fresh evidence from top energy consumer countries," Renewable Energy, Elsevier, vol. 197(C), pages 170-177.
    3. Tingbani, Ishmael & Okafor, Godwin & Tauringana, Venancio & Zalata, Alaa Mansour, 2019. "Terrorism and country-level global business failure," Journal of Business Research, Elsevier, vol. 98(C), pages 430-440.

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    More about this item

    Keywords

    terror; terrorism; economic growth; panel data; FE and RE models;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • H1 - Public Economics - - Structure and Scope of Government
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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