How terrorism affects the economic performance? The case of Pakistan

Khan, Alam; Estrada, Mario Arturo Ruiz; Yusof, Zarinah

doi:10.1007/s11135-015-0179-z

Cited by 18 publications

(19 citation statements)

References 20 publications

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“…In Pakistan, some empirical studies are available, but they have investigated the direct impact of terrorism on economic growth and concluded that terrorism has deteriorated economic growth in Pakistan (Hyder et al, 2015;Khan et al, 2016;Khan & Yusof, 2017;Mehmood, 2014;Shahbaz et al, 2013). Mubashra and Shafi (2018) have shown that counter-terrorism activities have short-and long-run effects on economic growth in Pakistan.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The literature has identified various channel variables through which terrorism is expected to affect economic growth (Eckstein & Tsiddon, 2004;Frey, Luechinger, & Stutzer, 2007;Khan et al, 2016;Mirza & Verdier, 2008;Sandler & Enders, 2008). For instance, terrorism impedes economic growth by damaging infrastructure, foreign trade, foreign investment, domestic savings, the currency exchange rate, tourism, and domestic capital formation, and by increasing inflation, brain drain, capital flight, debt burden, and government expenditure, among others.…”

Section: Literature Reviewmentioning

confidence: 99%

“…There are several reasons for terrorism in Pakistan, which include among others, ethnicity, illiteracy, income inequality, inflation, high population growth, high unemployment, political instability, poverty, and injustice (Ismail & Amjad, 2014;Khan, Estrada, & Yusof, 2016;Syed, Saeed, & Martin, 2015). In Pakistan, terrorism primarily increased after 9/11, when Pakistan began playing its role as a front line state against terrorism.…”

Section: Introductionmentioning

confidence: 99%

“…These terrorist activities have negatively affected economic growth in Pakistan. Some studies have been conducted in Pakistan and have shown that terrorism has deteriorated economic growth in the country (Hyder, Akram, & Padda, 2015;Khan et al, 2016;Khan & Yusof, 2017;Mehmood, 2014;Shahbaz et al, 2013). But these studies have explored the direct effect of terrorism on economic growth.…”

Section: Introductionmentioning

confidence: 99%

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Effect of terrorism on economic growth in Pakistan: an empirical analysis

Zakaria

Wen

Ahmed

2019

Economic Research-Ekonomska Istraživanja

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The paper examines the impact of terrorism on economic growth in Pakistan. Channel variables, such as foreign direct investment (FDI), domestic investment, and government spending, through which terrorism influences economic growth, are identified. For empirical analysis, annual data for the period 1972-2014 are used, and a structural model is estimated using the generalised method of moments (GMM) estimation approach. The results reveal that (1) the impact of terrorism on FDI and domestic investment is significantly negative, whereas the impact on government spending is significantly positive and (2) the net effect of terrorism on economic growth is negative. One per cent increase in terrorism reduces FDI by 0.104 per cent, domestic investment by 0.039 per cent and economic growth by 0.002 per cent. To increase economic growth more resources must be allocated to improve law and order. To attract foreign investment, complementary domestic investment must be increased.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Effect of terrorism on economic growth in Pakistan: an empirical analysis

Zakaria

Wen

Ahmed

2019

Economic Research-Ekonomska Istraživanja

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“…The general scenario of Pakistan is quite perplexing and contradictory to many other Asian countries. Regardless of having tremendous natural and human resources within its territory, the country is facing several challenges concerning to growing urbanization (Mustafa & Sawas, 2013), religious ideologies and geopolitical foreign interferences (Blank, Clary, & Nichiporuk, 2014), social instability, terrorism and insecurity issues (Khan, Estrada, & Yusof, 2015), which collectively cause economic and social downfalls. On the other hand, the country has numerous family-owned businesses and corporate level industries that demand strong internal and external corporate governance mechanisms to support their capital structures (Sheikh & Wang, 2012).…”

Section: Introductionmentioning

confidence: 99%

Untitled

2018

JGBI

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The purpose of this study is to explore factors that reinforce or obstruct business schools in Pakistan to develop managerial knowledge, skills and work-based learning experiences of MBA students. The study is prompted by growing debates about insufficiencies in business schools to prepare MBA graduates based on managerial capital needs in the regional markets. To understand the reasons of insufficiencies from business school's viewpoint, this study employs qualitative interviews to explore factors that reinforce or obstruct business schools. Deans, faculty members and administrators of five different business schools in Hyderabad, Pakistan participated in this study. Responses of the participants are transcribed into verbatim reports and description of findings is structured in SWOT analysis format. Findings show sixteen different factors, comprising of four strengths, seven weaknesses, three opportunities, and two threats. There are more number of weaknesses of business schools to develop MBA students. However, business schools have some strengths and opportunities which they may utilize and improve. Radical changes would strive from the higher education authority. Conceptual framework presented in this study recommends that higher education authority may lead the change, cooperate between business schools and stakeholders, and support business schools to develop future managers and leaders through MBA programs.

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