TERRORISM & ECONOMIC GROWTH IN 32 COUNTRIES USING PANEL DATA APPROACH
Keywords:
Terrorism, Panel Data, Economic Growth, GDP, SocioeconomicsAbstract
The aim of this study is to examine the relationship between terrorism and economic growth in 32 countries. For empirical analysis, a panel study is conducted applying annual data for the period 2005 – 2019, and a multiple linear regression least square is estimated. Panel unit root, panel least squares estimation, panel normality, panel multicollinearity as well as panel heteroskedasticity approaches are employed, respectively. The results of the study reveal that the impact of terrorism on economic growth is significantly negative. A one percent increase in terrorism decreases real GDP by 0.0016 percent. Moreover, the estimated model shows a high R square value, no serial correlation nor heteroskedasticity in the residuals, no multicollinearity, and the residuals are normally distributed.
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