War on Terror: Do Military Measures Matter? Empirical Analysis of Post 9/11 Period in Pakistan

33 Pages Posted: 29 May 2011

See all articles by Muhammad Qaiser Shahbaz

Muhammad Qaiser Shahbaz

COMSATS Institute of Information Technology (CIIT)

Muhammad Nasir

Pakistan Institute of Development Economics

Date Written: May 28, 2011

Abstract

This paper is the first attempt to investigate the causal relationship between military spending, terrorism, and intensity of terrorism in Pakistan, by applying ARDL approach to cointegration and VECM Granger-causality analysis. The results indicate that terrorism intensity, rather than the number of terrorist incidents, is the major determinant of military spending in both short-run and long-run. The study finds unidirectional causality running from terrorism intensity to military spending. The failure of military measures to curtail terrorism and its intensity induces one to suggest improved involvement of civil intelligence agencies by raising their budgets instead of military budget.

JEL Classification: C12, C32, O16

Suggested Citation

Shahbaz, Muhammad Qaiser and Nasir, Muhammad, War on Terror: Do Military Measures Matter? Empirical Analysis of Post 9/11 Period in Pakistan (May 28, 2011). Available at SSRN: https://ssrn.com/abstract=1854843 or http://dx.doi.org/10.2139/ssrn.1854843

Muhammad Qaiser Shahbaz (Contact Author)

COMSATS Institute of Information Technology (CIIT) ( email )

Park Road
Chak Shahzad
Islamabad, North-West Frontier Province 44000
Pakistan

Muhammad Nasir

Pakistan Institute of Development Economics ( email )

Quaid-i-Azam University Campus
P.O.Box 1091
Islamabad, Federal Capital 44000
Pakistan

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