Exploring the nexus: Foreign aid, war on terror, and conflict in Pakistan

Muhammad Nasir (), Faiz Rehman () and Mejzgaan Orakzai

Economic Modelling, 2012, vol. 29, issue 4, 1137-1145

Abstract: This study explores the nexus between foreign aid, war on terror, and terrorism in Pakistan for the period 1972–2010. By making use of Johansen method of cointegration, the paper concludes that, contrary to the popular assumption, there is no association between foreign assistance and conflict in Pakistan. However, the impact of foreign aid on terrorism is positive in the long run during the war on terror period. Furthermore, the positive impact of GDP on terrorism mirrors the fact that militants consider terrorist attacks a feasible option compare to open war in face of enhanced state capacity. The study also unearths the non-linear U-shape relationship between political repression and violence in the long run.

Keywords: Foreign aid; War on terror; Terrorism; Pakistan (search for similar items in EconPapers)
JEL-codes: D74 F35 H56 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:4:p:1137-1145

DOI: 10.1016/j.econmod.2012.04.004

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