Logo
Munich Personal RePEc Archive

Does economic growth cause terrorism in Pakistan?

Muhammad, Shahbaz and Muhammad, Nasir Malik and Muhammad, Shahbaz Shabbir (2011): Does economic growth cause terrorism in Pakistan?

[thumbnail of MPRA_paper_35101.pdf]
Preview
PDF
MPRA_paper_35101.pdf

Download (121kB) | Preview

Abstract

This paper analyzes the relationship between terrorism and economic growth for Pakistan by incorporating capital and trade openness. We used the data from 1971-2010 and have applied ARDL bounds testing approach to cointegration to examine the long run relationship between the variables. The VECM Granger causality approach is used to detect the direction of causality between terrorism and economic growth.

Our empirical results confirm the existence of long run relationship between economic growth and terrorism. The Granger causality analysis indicates bidirectional causality between terrorism and capital, trade openness and capital, and terrorism and trade openness. However, unidirectional causality is found running from economic growth to terrorism.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.