An analysis of a causal relationship between economic growth and terrorism in Pakistan

Muhammad Shahbaz, Muhammad Shahbaz Shabbir, Muhammad Nasir Malik and Mark Edward Wolters
Authors registered in the RePEc Author Service: Muhammad Shahbaz

Economic Modelling, 2013, vol. 35, issue C, 21-29

Abstract: The present study investigates the causal relationship between terrorism and economic growth in Pakistan by incorporating capital and trade openness in production function. The study covers the time period of 1973–2010. The ARDL bound testing approach has been applied to cointegration to examine the long-run relationship between terrorism and economic growth. The VECM Granger causality approach is used to test the direction of causality between terrorism and economic growth. Our empirical results confirm the existence of long-run relationship between terrorism and economic growth. The Granger causality analysis indicates that terrorism is Granger cause of economic growth. The feedback effect is found between terrorism and trade openness. The relationship between terrorism and capital is bidirectional.

Keywords: Terrorism; Economic growth; Cointegration and causality (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (56)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999313002496
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:35:y:2013:i:c:p:21-29

DOI: 10.1016/j.econmod.2013.06.031

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().