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Brutality or Frequency?. An Empirical Investigation of the Effects of Terrorism on Economic Growth in India

Kerim Arin, Fabio Spagnolo and Nicola Spagnolo

Revue économique, 2016, vol. 67, issue 6, 1141-1151

Abstract: In this paper we investigate the effects of terrorism on economic growth in India. Using a Markov switching model, we find evidence that terror has a significant and negative impact on Indian economic growth. Our empirical results also show that the magnitude of these effects is larger in periods of high growth. Finally, we compare the magnitude of the effects of the ?brutality? and the ?frequency? of terror attacks, and conclude that the effect of the frequency is slightly higher than the effect of the brutality.

Date: 2016
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