The Relationship between Terrorism and Economic Growth

Abstract

The study has been conducted to evaluate the relationship between terrorism and tourism with economic growth (GDP), Foreign Direct Investment (FDI) and employment. The study has adopted time series technique for the time period of 2003 to 2019. The methodology has been based on two periods i.e. pre period 2003 to 2014 and post period 2014 to 2019. The study has taken terrorism and tourism as independent and economic growth (GDI), FDI and employment as dependent variable. The study has taken co-integration test for estimating the long run relationship among the series. Independent sample t-test has been used comparison of two sample time periods. The findings reveal that there is a long run relationship between terrorism, tourism and GDP and FDI while no relationship has been seen with employment. The findings further added that there is a significant difference of terrosim and tourism between pre and post time periods.