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.
Primary Language | English |
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Journal Section | Articles |
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Publication Date | December 31, 2016 |
Published in Issue | Year 2016 Issue: 32 |
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