FDI NEXUS TERRORISM: Evidence from Pakistan

Authors

  • Muhammad Shabir Jan
  • Muhammad Nisar
  • Seema Zubair
  • Fazal Hanan
  • Muhammad Taimur Khan
  • Liaqat Ali
  • Zia Ur Rahman
  • Azhar khan

Keywords:

FDI, Terrorism, co-integration and granger causality

Abstract

The study conduct to determine the co-integration between the FDI and terrorism. Time series data. The data for terrorism is taken form World Governances Indicator WGI and Foreign Direct Investment (FDI) data is taken from world bank. The study applied the co-integration and granger causality test to check the causality between terrorism and foreign Direct Investment (FDI). The study applied the ADF unit root test, co-integration and granger causality test the result concluded that variable are stationary at difference so the variable are not co-integrate means that the FDI and terrorism does not a granger causality of each other.

References

Abadie, G. Gardeazabal, J. (2003) “The economic costs of conflicts: A case study of the Basque country”, The American Economic Review, Vol. 93, No. 1, pp. 113–132, doi: 10.3386/w8478.

Agrawal, S. (2011) “The Impact of Terrorism on Foreign Direct Investment: Which Sectors

are More Vulnerable?”, CMC Senior Theses, Paper 124, available at: http:// scholarship.claremont.edu/cgi/viewco ntent.cgi? article=1184&context=cmc_ theses.

Blomberg, B., Moby, A. (2005) “How Severly Does Violence Deter International

Investment?”, Claremont Colleges Economics Departments, Working Paper 2005-01, doi: 10.2139/ssrn.722812.

Blomberg, S. B., Hess, G. D., Orphanides, A. (2004) “The macroeconomic consequences of terrorism”, Journal of Monetary Economics, Vol. 51, No. 5, pp. 1007–1032, doi: 10.1016/j.jmoneco.2004.04.001.

Collier, P., Sambanis, N. (2002) “Understanding Civil Wars: A New Agenda”, Journal of Conflict Resolution, Vol. 46, No. 1, pp. 3–12, doi: 10.1177/0022002702046001001.

Drakos, K. (2004) “Terrorism-Induced Structural Shifts in Financial Risk: Airline Stocks in

the Aftermath of the September 11th Terror Attacks”, European Journal of Political Economy, Vol. 20, No. 2, pp. 435–446, doi: 10.1016/j. ejpoleco.2003.12.010

Enders, W., Sandler, T. (1996) “Terrorism and Foreign Direct Investment in Spain and

Greece”, Kyklos, Vol. 49, No. 3, pp. 331–352, doi: 10.1111/j.1467- 6435.1996.tb01400.x.

Enders, W., Sandler, T. (2006) The Political Economy of Terrorism, Cambridge University Press, 3rd Edition, doi: 10.1017/cbo9780511791451.011.

Lutz, J. B., Lutz, M. J. (2014) “Terrorism and Its Impact on Foreign Economic Activity in Sub- Saharan Africa”, Journal of Business and Economics, Vol. 5, No. 4, pp. 525–534, availableat:http://www.academicstar.us/UploadFile/Picture/20146/201461445249331.pdf.

Mehmood, S. (2013) “Terrorism and the macroeconomy: Evidence from Pakistan”, Defence

and Peace Economics, Vol. 25, No. 5, pp. 509–534, doi: 10.1080/10242694.2013.793529.

Tavares, J. (2004) “The Open Society Assesses Its Enemies: Shocks, Disasters and Terrorist Attacks”, Journal of Monetary Economics, Vol. 51, No. 5, pp. 1039– 1070, doi: 10.1016/j.jmoneco.2004.04.009.

Volker, N., Schumacher D. (2004) “Terrorism and international trade: an empirical

investigation”, European Journal of Political Economy, Vol. 20, No. 2, pp. 423–433, doi: 10.1016/j.ejpoleco.2003.12.009.

Gries, T., Krieger, T., Meierrieks, D. (2011) “Causal Linkages Between Domestic Terrorism and Economic Growth”, Defence and Peace Economics, Vol. 22, No. 5, pp. 493–508, doi: 10.1080/10242694.2010.532943.

Ito, H., Lee, D. (2004) “Assessing the Impact of the September 11 Terrorist Attacks on US

Airline Demand”, Journal of Economics and Business, Vol. 57, No. 1, pp. 75–95, doi: 10.2139/ssrn.722491.

James, B. R. et al. (2006) “Economic Impacts of Global Terrorism: From Munich to Bali”, available at: http://ssrn.com/abstract=892033 or doi:10.2139/ ssrn.892033.

Downloads

Published

2021-04-30

How to Cite

Jan, M. S. ., Nisar, M. ., Zubair, S. ., Hanan, F. ., Khan, M. T. ., Ali, L. ., Rahman, Z. U. ., & khan, A. . (2021). FDI NEXUS TERRORISM: Evidence from Pakistan. The Journal of Contemporary Issues in Business and Government, 27(2), 1814–1819. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/1085

Most read articles by the same author(s)