Globalization Nexus Terrorism: Evidence from Pakistan

Sabeeha Naseer, Muhammad Kamran Khan and Sami Ullah

Journal of Business and Social Review in Emerging Economies, 2021, vol. 7, issue 1, 175-182

Abstract: The current study investigates nexuses between globalization and terrorism in context of Pakistan. Time series data utilized for time period 1981 to 2017. The data has been taken from the World Governance Indicator (WGI) and Swiss global index (KOF). Augmented Dicky fuller (ADF) test was applied to check out stationary of all variables such as terrorism, globalization, remittances, foreign direct investment and trade. The results of ADF test indicated that all variables were stationary at first difference. For empirical analysis Johnson co-integration and VAR model under causality were applied. The co-integration result shows all variables terrorism, globalization, FDI, remittances and trade are not co-integrated. Vector Auto Regression (VAR) Model under causality test shows that Globalization is causing factor of terrorism. While, other controlling variables such as remittances cause globalization, foreign direct investment and trade.

Keywords: Globalization; Terrorism; DFDI; Remittances; TRADE; ADF; VAR model (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:src:jbsree:v:7:y:2021:i:1:p:175-182

DOI: 10.26710/jbsee.v7i1.1594

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