BS ECONOMICS

Permanent URI for this community

https://escholar.umt.edu.pk/handle/123456789/7204

Browse

Browsing BS ECONOMICS by Author "Akbar Ali"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    The Nexus between Terrorism and Economic growth in Pakistan: An Empirical Approach
    (UMT, Lahore, 2020) Akbar Ali
    The following paper is an effort to examine the nexus between economic growth and terrorism in the case of Pakistan. For this purpose, the paper investigated the relationship of terrorism with economic growth both in the long run as well as in the short run for the case of Pakistan. The dependent variable is economic growth and terrorism is used as independent variable with other controlled variables including inflation, unemployment, foreign direct investment, and population. The sample size used in this study comprises of 40 observations from the year 1980 to 2019, respectively. ARDL bound testing is applicable for final time series data ranging in the years between 1980 and 2019 to find the short run and long run relationship between dependent and independent variables. The study also includes other diagnostic tests like unit root test, descriptive statistics, coefficient of correlation and variance of inflation factor. The study reveals that, there is a negative relationship between economic growth and terrorism both in the long run and short run. The study further recommends that Pakistan needs to take strong actions to destroy the evil of terrorism from the country. Furthermore, other controlled variables like FDI has a positive and significant impact on economic growth. Increasing FDI will possibly increase economic growth for the case of Pakistan. Inflation is found to have a negative but insignificant relationship with economic growth in case of Pakistan. Similarly, population has a positive but insignificant impact on economic growth, respectively. However, there exists negative but