DRIVERS OF TERRORISM IN PAKISTAN:An Evidence through Institutional Prism

Sehar Saleem and Saima Sarwar

Pakistan Journal of Applied Economics, 2015, vol. 25, issue 2, 193-211

Abstract: Terrorism is a highly debated issue in developing countries like Pakistan. This study aims to relate the phenomenon with institutional framework of any economy. These institutions are actually responsible for behavior of people towards such activities. For this purpose, the role of social institutions through civil rights provision, specifically the political and economic institutions have been explored with respect to number of terrorist activities in Pakistan. Both, the long-run and short-run nexus among the desired variables have been developed because it is believed that institutions mostly show their effect in the long-run. Time span of the data used is 1975-2013. The findings prove that for all types of institutions, there exists both the long-run and long-run-relationship but in short-run social institutions it seems to be more responsible for causing this critical issue. The results show that about 89 per cent convergence towards equilibrium takes place (per annum) through these variables.

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Date: 2015
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