IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v1y2021i9d10.1007_s43546-021-00112-2.html
   My bibliography  Save this article

The links between renewable energy, fossil energy, terrorism, economic growth and trade openness: the case of Pakistan

Author

Listed:
  • Yasir Khan

    (Anhui Polytechnic University)

  • Cai ShuKai

    (Anhui Polytechnic University)

  • Taimoor Hassan

    (Nanjing University of Science and Technology)

  • Jawed Kootwal

    (Southeast Univeristy)

  • Muhammad Nisar Khan

    (Bacha Khan University Charsadda)

Abstract

Terror as well as terrorism could result in substantial levels of losses for any economy. This paper empirically examines the impact of terrorism on trade openness, renewable, fossil energy, and economic growth in the case of Pakistan over the period 1990–2017. We use the autoregressive distributive lag (ARDL), bound testing model, to explore the short and long-run relationship among trade openness, renewable energy, economic growth, fossil energy, and terrorism. The error correction model (ECM) reveals the short-run relationship between trade openness, economic growth, renewable and fossil energy, and terrorism. In general, we find economic growth on domestic terrorism is strong. We also find the terrorist activities decrease the trade volume. The findings suggest that terrorism has a negative influence on Pakistan’s economic growth and trade. Pakistan needs to make strict policies in terms of the utilization of more renewable energies, while, in the meantime, to resolve military and political differences with the help of its diplomatic channels specifically in the country and particularly in South Asia.

Suggested Citation

  • Yasir Khan & Cai ShuKai & Taimoor Hassan & Jawed Kootwal & Muhammad Nisar Khan, 2021. "The links between renewable energy, fossil energy, terrorism, economic growth and trade openness: the case of Pakistan," SN Business & Economics, Springer, vol. 1(9), pages 1-25, September.
    • Handle: RePEc:spr:snbeco:v:1:y:2021:i:9:d:10.1007_s43546-021-00112-2
    DOI: 10.1007/s43546-021-00112-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-021-00112-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-021-00112-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Thomas Gries & Tim Krieger & Daniel Meierrieks, 2011. "Causal Linkages Between Domestic Terrorism and Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(5), pages 493-508, June.
    2. Mohamed, Hassen & Ben Jebli, Mehdi & Ben Youssef, Slim, 2019. "Renewable and fossil energy, terrorism, economic growth, and trade: Evidence from France," Renewable Energy, Elsevier, vol. 139(C), pages 459-467.
    3. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    4. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 1-24, February.
    5. Destek, Mehmet & Sinha, Avik, 2020. "Renewable, non-renewable energy consumption, economic growth, trade openness and ecological footprint: Evidence from organisation for economic Co-operation and development countries," MPRA Paper 104246, University Library of Munich, Germany, revised 2020.
    6. 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.
    7. Peter Kurrild-Klitgaard & Mogens Justesen & Robert Klemmensen, 2006. "The political economy of freedom, democracy and transnational terrorism," Public Choice, Springer, vol. 128(1), pages 289-315, July.
    8. Yasir Khan & Qiu Bin & Taimoor Hassan, 2019. "The impact of climate changes on agriculture export trade in Pakistan: Evidence from time‐series analysis," Growth and Change, Wiley Blackwell, vol. 50(4), pages 1568-1589, December.
    9. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    10. Freytag, Andreas & Krüger, Jens J. & Meierrieks, Daniel & Schneider, Friedrich, 2011. "The origins of terrorism: Cross-country estimates of socio-economic determinants of terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 5-16.
    11. Mirza, Daniel & Verdier, Thierry, 2008. "International trade, security and transnational terrorism: Theory and a survey of empirics," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 179-194, June.
    12. Eckstein, Zvi & Tsiddon, Daniel, 2004. "Macroeconomic consequences of terror: theory and the case of Israel," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 971-1002, July.
    13. Ismail, Aisha & Amjad, Shehla, 2014. "Determinants of terrorism in Pakistan: An empirical investigation," Economic Modelling, Elsevier, vol. 37(C), pages 320-331.
    14. Nitsch, Volker & Schumacher, Dieter, 2004. "Terrorism and international trade: an empirical investigation," European Journal of Political Economy, Elsevier, vol. 20(2), pages 423-433, June.
    15. Bahar Araz-Takay & K. Peren Arin & Tolga Omay, 2009. "The Endogenous And Non-Linear Relationship Between Terrorism And Economic Performance: Turkish Evidence," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(1), pages 1-10.
    16. Alberto Abadie, 2006. "Poverty, Political Freedom, and the Roots of Terrorism," American Economic Review, American Economic Association, vol. 96(2), pages 50-56, May.
    17. Caruso, Raul & Schneider, Friedrich, 2011. "The socio-economic determinants of terrorism and political violence in Western Europe (1994–2007)," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 37-49.
    18. Keefer,Philip & Loayza,Norman (ed.), 2008. "Terrorism, Economic Development, and Political Openness," Cambridge Books, Cambridge University Press, number 9780521887588, November.
    19. Morrow, James D. & Siverson, Randolph M. & Tabares, Tressa E., 1998. "The Political Determinants of International Trade: The Major Powers, 1907–1990," American Political Science Review, Cambridge University Press, vol. 92(3), pages 649-661, September.
    20. Shahbaz, Muhammad & Shabbir, Muhammad Shahbaz & Malik, Muhammad Nasir & Wolters, Mark Edward, 2013. "An analysis of a causal relationship between economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 35(C), pages 21-29.
    21. Tavares, Jose, 2004. "The open society assesses its enemies: shocks, disasters and terrorist attacks," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 1039-1070, July.
    22. Daniel Meierrieks & Thomas Gries, 2012. "Economic Performance And Terrorist Activity In Latin America," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(5), pages 447-470, October.
    23. Gassebner, Martin & Jong-A-Pin, Richard & Mierau, Jochen O., 2008. "Terrorism and electoral accountability: One strike, you're out!," Economics Letters, Elsevier, vol. 100(1), pages 126-129, July.
    24. Walter Enders & Todd Sandler & Gerald F. Parise, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Wiley Blackwell, vol. 45(4), pages 531-554, November.
    25. Konstantinos Drakos & Ali M. Kutan, 2003. "Regional Effects of Terrorism on Tourism in Three Mediterranean Countries," Journal of Conflict Resolution, Peace Science Society (International), vol. 47(5), pages 621-641, October.
    26. Sharif, Arshian & Raza, Syed Ali & Ozturk, Ilhan & Afshan, Sahar, 2019. "The dynamic relationship of renewable and nonrenewable energy consumption with carbon emission: A global study with the application of heterogeneous panel estimations," Renewable Energy, Elsevier, vol. 133(C), pages 685-691.
    27. Khusrav Gaibulloev & Todd Sandler, 2008. "Growth Consequences of Terrorism in Western Europe," Kyklos, Wiley Blackwell, vol. 61(3), pages 411-424, August.
    28. Llussá, Fernanda & Tavares, José, 2011. "Which terror at which cost? On the economic consequences of terrorist attacks," Economics Letters, Elsevier, vol. 110(1), pages 52-55, January.
    29. repec:bla:kyklos:v:45:y:1992:i:4:p:531-54 is not listed on IDEAS
    30. Blomberg, S. Brock & Broussard, Nzinga H. & Hess, Gregory D., 2011. "New wine in old wineskins? Growth, terrorism and the resource curse in sub-Saharan Africa," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 50-63.
    31. Shahbaz, Muhammad, 2013. "Linkages between inflation, economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 32(C), pages 496-506.
    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. Xiuqin Zhang & Xudong Shi & Yasir Khan & Taimoor Hassan & Mohamed Marie, 2023. "Carbon Neutrality Challenge: Analyse the Role of Energy Productivity, Renewable Energy, and Collaboration in Climate Mitigation Technology in OECD Economies," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    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. Siliang Guo & Yanhua Diao & Junliang Du, 2022. "Coupling Coordination Measurement and Evaluation of Urban Digitalization and Green Development in China," IJERPH, MDPI, vol. 19(22), pages 1-32, November.
    4. Usman Mehmood, 2024. "Analyzing the Role of Political Risk, GDP, and Eco-Innovations Towards CO2 Emissions in South Asian Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2121-2135, March.
    5. Usman Mehmood & Ephraim Bonah Agyekum & Hossam Kotb & Ahmad H. Milyani & Abdullah Ahmed Azhari & Salman Tariq & Zia ul Haq & Arif Ullah & Kashif Raza & Vladimir Ivanovich Velkin, 2022. "Exploring the Role of Communication Technologies, Governance, and Renewable Energy for Ecological Footprints in G11 Countries: Implications for Sustainable Development," Sustainability, MDPI, vol. 14(19), pages 1-13, October.
    6. Khan, Yasir & Oubaih, Hana & Elgourrami, Fatima Zahra, 2022. "The effect of renewable energy sources on carbon dioxide emissions: Evaluating the role of governance, and ICT in Morocco," Renewable Energy, Elsevier, vol. 190(C), pages 752-763.
    7. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    8. Xie, Peijun & Jamaani, Fouad, 2022. "Does green innovation, energy productivity and environmental taxes limit carbon emissions in developed economies: Implications for sustainable development," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 66-78.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shahbaz, Muhammad & Shabbir, Muhammad Shahbaz & Malik, Muhammad Nasir & Wolters, Mark Edward, 2013. "An analysis of a causal relationship between economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 35(C), pages 21-29.
    2. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part II)," Discussion Papers of DIW Berlin 1050, DIW Berlin, German Institute for Economic Research.
    3. Freytag, Andreas & Krüger, Jens J. & Meierrieks, Daniel & Schneider, Friedrich, 2011. "The origins of terrorism: Cross-country estimates of socio-economic determinants of terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 5-16.
    4. Thomas Gries & Tim Krieger & Daniel Meierrieks, 2011. "Causal Linkages Between Domestic Terrorism and Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(5), pages 493-508, June.
    5. Muhammad, Shahbaz & Muhammad, Nasir Malik & Muhammad, Shahbaz Shabbir, 2011. "Does economic growth cause terrorism in Pakistan?," MPRA Paper 35101, University Library of Munich, Germany, revised 30 Nov 2011.
    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. Mohamed, Hassen & Ben Jebli, Mehdi & Ben Youssef, Slim, 2019. "Renewable and fossil energy, terrorism, economic growth, and trade: Evidence from France," Renewable Energy, Elsevier, vol. 139(C), pages 459-467.
    8. Kis-Katos, Krisztina & Liebert, Helge & Schulze, Günther G., 2014. "On the heterogeneity of terror," European Economic Review, Elsevier, vol. 68(C), pages 116-136.
    9. Serhan Cevik & John Ricco, 2020. "Shock and awe? Fiscal consequences of terrorism," Empirical Economics, Springer, vol. 58(2), pages 723-748, February.
    10. Pınar Derin-Güre, 2014. "Development, immigration and terrorism," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 15, pages 425-462, Edward Elgar Publishing.
    11. Friedrich Schneider & Raul Caruso, 2011. "The (Hidden) Financial Flows of Terrorist and Transnational Crime Organizations: A Literature Review and Some Preliminary Empirical Results," Economics of Security Working Paper Series 52, DIW Berlin, German Institute for Economic Research.
    12. Robert E.B. Lucas (ed.), 2014. "International Handbook on Migration and Economic Development," Books, Edward Elgar Publishing, number 15465.
    13. Tim Krieger & Daniel Meierrieks, 2011. "What causes terrorism?," Public Choice, Springer, vol. 147(1), pages 3-27, April.
    14. Sultan Mehmood, 2014. "Terrorism and the macroeconomy: Evidence from Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(5), pages 509-534, October.
    15. Dorsett, Richard, 2013. "The effect of the Troubles on GDP in Northern Ireland," European Journal of Political Economy, Elsevier, vol. 29(C), pages 119-133.
    16. Khusrav Gaibulloev & Todd Sandler & Donggyu Sul, "undated". "Reevaluating Terrorism and Economic Growth: Dynamic Panel Analysis and Cross-Sectional Dependence," Economics Working Papers 02-03/2013, School of Business Administration, American University of Sharjah.
    17. Fırat Bilgel & Burhan Can Karahasan, 2017. "The Economic Costs of Separatist Terrorism in Turkey," Journal of Conflict Resolution, Peace Science Society (International), vol. 61(2), pages 457-479, February.
    18. Gustavo Canavire-Bacarreza & Alejandra Montoya-Agudelo & Felipe Bedoya-Maya, 2017. "An Uphill Battle: The Relationship Between Geography and Terrorism," Documentos de Trabajo de Valor Público 15759, Universidad EAFIT.
    19. Ismail, Aisha & Amjad, Shehla, 2014. "Determinants of terrorism in Pakistan: An empirical investigation," Economic Modelling, Elsevier, vol. 37(C), pages 320-331.
    20. Amar Iqbal Anwar & Mazhar Mughal, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working Papers hal-01885149, HAL.

    More about this item

    Keywords

    Trade openness; Economic growth; Renewable energy; Terrorism; Pakistan; ARDL model;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    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:spr:snbeco:v:1:y:2021:i:9:d:10.1007_s43546-021-00112-2. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.