IMPACT OF TERRORISM ON GDP GROWTH IN PAKISTAN

2.  Terrorism is disordering the country social
structure and economic development and
political system
 The terrorism has soiled the reputation of the
country due to this lack of economic growth
and governance over the year
 Since 9/11, many countries have been
subjected to economic terrorism.

3.  Terrorism is costing Pakistan both economical
and human lives loss.
 In 2009, Pakistan’s GDP rate remained 3%.
 The inflation in Pakistan is high i.e. 18.85%.

4.  The terrorism in spain in 1970’s abadie and
Gardeazab 2001 discover there was 10%
deterioration in per capita GDP.
 The study by Johnston eat 2005 attempted to
explore the impact of terrorism on financial
market.
 Gulley and Jahangir 2006 use statistical data
available to calculate impact on GDP growth.
 One school of thought by Gurr 1970 identify
that poverty and GDP is low due to terrorism.

5. Hypothesis:
1. There is positive relationship between
terrorism and GDP H1
2. There is negative relationship between GDP
and terrorism. H2

8. 1. Dislocation of economic activities
2. Damages to property…
3. Investment climate…
4. Slowdown of overall economy…
5. Losses of human life…
6. Higher expenditures on defence ad police

10. Independent and dependent variables
 Dependent variables = GDP Growth
 Independent variables = Terrorism

11. The study uses time series data for this
purpose of research work. it uses high
frequency data which is daily data over period
of two and half years.
Secondary data