How Terrorism Affects Economic Performance: The Case of Pakistan

Posted: 3 Oct 2014 Last revised: 7 Oct 2014

See all articles by Mario Arturo Ruiz Estrada

Mario Arturo Ruiz Estrada

University of Malaya (UM) - Faculty of Economics & Administration (FEA)

Jungsuk Kim

Sogang University - Institute of International and Area Studies

Donghyun Park

Nanyang Technological University (NTU); Asian Development Bank

Date Written: October 1, 2014

Abstract

This paper introduces a new economic model to analyzing the effects of a possible terrorist attack. This paper propose the terrorist attack vulnerability Evaluation model (TAVE-Model). The model analyzes the evolution of terrorism in three different phases: (i) origins of a terrorist attack; (ii) terrorist attack; (v) post-terrorist attack effects. In addition, the TAVE-Model is introducing a serial of new indicators such as economic desgrowth (-δ), intensity of terrorist activities (αi), terrorist attack losses (-π), economic wear (Π) under a potential terrorist attack, level of terrorist attack tension (ζ), level of terrorist attacks monitoring (η) and total economic leaking (Ωt) under a potential terrorist attack. Finally, this paper made a simulation to evaluate from a theoretical perspective the impact of a possible terrorist attack anywhere and anytime. Finally, we applied on Pakistan the TAVE-Model to analyze how cause and effects of terrorism that can affect directly on the economic performance in this country.

Keywords: Terrorism, Economic Modeling, Economic Desgrowth

JEL Classification: R11, R12

Suggested Citation

Ruiz Estrada, Mario Arturo and Kim, Jungsuk and Park, Donghyun, How Terrorism Affects Economic Performance: The Case of Pakistan (October 1, 2014). Available at SSRN: https://ssrn.com/abstract=2504216

Mario Arturo Ruiz Estrada (Contact Author)

University of Malaya (UM) - Faculty of Economics & Administration (FEA) ( email )

Kuala Lumpur, 50603
Malaysia
+60126850293 (Phone)

HOME PAGE: http://ssrc.um.edu.my/

Jungsuk Kim

Sogang University - Institute of International and Area Studies ( email )

35 Baekbeom-ro
Mapo-gu
Seoul, Seoul 121-742
Korea, Republic of (South Korea)

Donghyun Park

Nanyang Technological University (NTU) ( email )

S3 B2-A28 Nanyang Avenue
Singapore, 639798
Singapore

Asian Development Bank

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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