ECONOMIC CONSEQUENCES OF TERRORISM: THE CASE OF PAKISTAN

The word terrorism refers to deliberate use of violence to obtain political or social objectives through terrorization of large number of people. Apart from causing personal injuries and the loss of lives, terrorism has factual political and economic consequences that goes beyond the direct costs or damages caused by terrorist activities. This study seeks to analyze the impact of drone attacks and suicide attacks on the economy of Pakistan specifically by focusing onvariables such as Gross Domestic Product (GDP), Foreign Direct Investment (FDI) and value of Rupee covering period from 2005-2014. A descriptive statistical technique is used to examine the data. The hypothesis is assessed by using various techniques including Pearson correlationtechnique and linear regression model. The data has been gathered by using various sources including South Asia Terrorism Portal (SATP), World Bank Development Indicators, and etc. Findings indicate that GDP growth has very strong negative relationship with suicide attacks and drone attacks whereas suicide attacks and drone attacks have no impact on FDI net inflows and Value of Pak Rupee

Keywords:

TERRORISM , GDP , FDI , PAKISTAN