Terror Incidents and Economic Growth: The Case of Turkey
Abstract
This study investigates the dynamic relationship between terror incidents and economic performance (growth) for Turkish economy, using annual data from 1984 to 2009. Empirical evidence from a dynamic bivariate model confirms the significance of the relationship between terror incidents/activities, and economic growth. Impulse-response functions for both variables indicate that the response of economic growth to terror incidents is positive and peaks in two years. On the other hand, the response of terror incidents to growth shock is significantly negative, and takes 3 to 6 years. Empirical findings indicate that better economic performance reduces terror activities with three year lags. Consequently, patiently implementing appropriate policies under political and economic stability is recommended.
Keywords
References
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Details
Primary Language
English
Subjects
-
Journal Section
Research Article
Publication Date
December 31, 2016
Submission Date
June 8, 2016
Acceptance Date
-
Published in Issue
Year 2016 Number: 32