Causal Linkages between Domestic Terrorism and Economic Growth

23 Pages Posted: 25 Feb 2009 Last revised: 5 Mar 2009

See all articles by Thomas Gries

Thomas Gries

University of Paderborn

Tim Krieger

University of Freiburg - Department of Economics

Daniel Meierrieks

WZB Berlin Social Science Center

Date Written: February 17, 2009

Abstract

We use the Hsiao-Granger method to test for growth-terrorism causality for seven Western European countries. In bivariate settings, the impact of economic performance on domestic terrorism is very strong. In trivariate settings, the impact of performance on terrorism diminishes. Here, we find that economic performance leads terrorist violence in robust ways only for three out of seven countries. Terrorism is almost never found to causally influence growth in bivariate and trivariate specifications. Our findings indicate that (i) the role of economic performance in determining terrorist violence appears to have been important for some countries and (ii) all attacked economies have been successful in adjusting to the threat of terrorism.

Keywords: Domestic Terrorism, Growth, Hsiao-Granger Causality, Western Europe

JEL Classification: C32, N40, 052

Suggested Citation

Gries, Thomas and Krieger, Tim and Meierrieks, Daniel, Causal Linkages between Domestic Terrorism and Economic Growth (February 17, 2009). Available at SSRN: https://ssrn.com/abstract=1349218 or http://dx.doi.org/10.2139/ssrn.1349218

Thomas Gries

University of Paderborn ( email )

Warburger St. 100
Paderborn, D-33098
Germany

Tim Krieger (Contact Author)

University of Freiburg - Department of Economics ( email )

University of Freiburg
Wilhelmstr. 1b
Freiburg, D-79085
Germany

HOME PAGE: http://www.wguth.uni-freiburg.de

Daniel Meierrieks

WZB Berlin Social Science Center ( email )

Reichpietschufer
50
Berlin, D-10785
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
427
Abstract Views
2,027
rank
78,378
PlumX Metrics