A BURDEN ON ECONOMY: TERROR

Abstract

Author(s): Emin Ahmet KAPLAN, Melike Rana DAYIO?LU

Terrorism has gained a global quality especially after the attacks of 11 September 2001 and has recently become a more important threat to the world. Terrorism also involves indirect damages that spread to the long term beyond the direct damages to the countries. These indirect damages caused by terror have emerged through social and political influences and as well as through the damages given to the economic growth. In this study; the effects of terrorism have been tried to be measured through changes in economic growth. In this context, changes on economic growth have been tried to be explained by using fundamental macroeconomic variables that might affect economic growth, internal and external conflict showing terror and violence and institutional variables such as corruption, religious tensions, ethnic tensions by dynamic panel data analysis for 1984-2015 and 29 OECD countries. As a result of the analyzes, it was found that there is a negative relationship between economic growth and terrorism.

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