The Impact of Economic Performance, Democracy and US Aid on Terrorism
Loading...
Date
2017-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
UMT.Lahore
Abstract
This research work is an attempt to examine the economic and political factors that can
have a significant impact on terrorism within Pakistan. We captured data for Inflation,
Investment, Educational Expenditures, Trade, Democracy and US Aid to Pakistan.
Autoregressive Distributed Lag Model (ARDL) along with granger causality testwas
applied to analyze short-run, long-run impact coefficients and direction of granger
causality among these variables. The results suggest that increasing educational
expenditures and investment in the country are increasing terrorism in Pakistan. While on
the other hand, decreasing inflation and increasing trade can dampen the intensity of
terrorist attack. More US Aid directed towards counter-terrorism policies and non democratic regimes were also found to have increased terrorism intensity.