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The Impact of Counter-terrorism Effectiveness on Economic Growth of Pakistan: An Econometric Analysis

Sana Mubashra and Mariuam i Shafi

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract The purpose of present study is to explore theoretically and empirically the impact of counterterrorism effectiveness on economic growth of Pakistan. The data for counter-terrorism components construct from GTD and data for growth variables gathered from WDI for the time 1980 to 2015. This study developed “negative binomial regression model” for investigating the magnitude and significance of counter-terrorism effectiveness. It also uses the ARDL bound test and causality analysis for examining the causal relationship between economic growth and counter-terrorism effectiveness. This study further identifies that there are three types of proactive strategies used by Government and military authorities to reduce violence: civilian policies, peace accords and military operations. The result shows that there are long term impacts of counter-terrorism policies on economic growth. The findings also imply that counter-terrorism strategies may not be able to restrict violence and incapacitate militant’s organization and their sleeper cell if it lacks strong political support. The present work is raw evidence for the effort level of authorities and their preemptive strategies that leads to the significant breakdown effect to curb terrorism across the country.

Keywords: Counterterrorism:; Causality:; Military; operations:; Negative; binomial (search for similar items in EconPapers)
JEL-codes: K42 (search for similar items in EconPapers)
Date: 2018
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