Interlinkages among Terrorism, Macroeconomic Instability, Political Instability, and Economic Growth in Pakistan

This study attempts to establish the relationship between three types of instabilities and economic growth. Political instability, macroeconomic terrorism, growth are analyzed for period 1970 2019 in Pakistan. The constructs indices above-mentioned variables by adding some new variables. Results show that political GDP per capita have long-run associations. instability is positively related terrorism. It indicates instable environment paves way terrorists achieve their targets However, positive association terrorism due uneven income distribution pattern. stimulates deprived groups become a part violent activities. Furthermore, results performance country has no significant effect on terrorist activities but persistent poor increases probability Therefore, long-run, influence Causality relationships indicate link instability. causes both