Terrorism and Economic Growth: A Comprehensive Analysis of the Adverse Macroeconomic Effect of Terrorism, 1970-2020
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How does terrorism affect economic growth? This article examines whether an increase in terrorist activity leads to a decrease in economic growth or not. Although previous studies have attempted to unveil the association between terrorism and economic growth, previous literature is still not able to reach a consensus on the influence of terrorism. One of the most important hurdles to unveil the genuine impact of terrorism is to secure generalizability of findings, which has not been achieved by previous studies. This article, using a time- series cross-national analysis on 131 countries from 1970 to 2020, demonstrates that the detrimental impact of terrorism on economic growth is statistically significant across various model specifications. The association is more conspicuous regarding domestic terrorism than transnational one. This article not merely provides empirical evidence for the link between terrorism and economic growth, but also examines the explanatory powers of other determinants concerning economic growth.
Abstract
How does terrorism affect economic growth? This article examines whether an increase in terrorist activity leads to a decrease in economic growth or not. Although previous studies have attempted to unveil the association between terrorism and economic growth, previous literature is still not able to reach a consensus on the influence of terrorism. One of the most important hurdles to unveil the genuine impact of terrorism is to secure generalizability of findings, which has not been achieved by previous studies. This article, using a time- series cross-national analysis on 131 countries from 1970 to 2020, demonstrates that the detrimental impact of terrorism on economic growth is statistically significant across various model specifications. The association is more conspicuous regarding domestic terrorism than transnational one. This article not merely provides empirical evidence for the link between terrorism and economic growth, but also examines the explanatory powers of other determinants concerning economic growth.
참고문헌 (91)
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