The Impact of Terrorism on Turkey's Economic Performance from 1990 to 2016

24 Pages Posted: 13 Nov 2017

See all articles by Mario Arturo Ruiz Estrada

Mario Arturo Ruiz Estrada

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

Donghyun Park

Asian Development Bank - Economic Research

Alam Khan

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

Date Written: November 9, 2017

Abstract

This research work applies the terrorist attack vulnerability evaluation model (TAVEModel) to evaluate the effect of terrorism on the economic performance of Turkey. We examine both the short run and long-run economic impact of terrorist attacks in Turkey. The TAVE-Model applies a number of indicators to evaluate the economic impact. The indicators are economic desgrowth (-δ), intensity of terrorist activities (αi), terrorist attack losses (-π), economic wear (Π), level of terrorist attack tension (ζ), level of terrorist attacks monitoring (η), and total economic leaking (Ωt) under a terrorist attack. The idea of TAVE-Model is that the economic impact of a terrorist attack depends on a country’s vulnerability to attacks from domestic and international terrorist groups. The application of a model to Turkey is highly topical in light of the spate of terrorist attacks the country suffered recently. The results of TAVE-Model confirms that economic leaking, economic desgrowth, and economic wear has increased from the 1990s to 2016. The issue of terrorism in Turkey is multidimensional, which requires an effective social assistance program as well as a stronger and impartial justice system, that will render poorer Turks and will increase the opportunity cost of terrorism.

Keywords: terrorism, economic modeling, economic desgrowth, policy modeling, Turkey

JEL Classification: R11, R12

Suggested Citation

Ruiz Estrada, Mario Arturo and Park, Donghyun and Khan, Alam, The Impact of Terrorism on Turkey's Economic Performance from 1990 to 2016 (November 9, 2017). Available at SSRN: https://ssrn.com/abstract=3067860 or http://dx.doi.org/10.2139/ssrn.3067860

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/

Donghyun Park

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Alam Khan

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

University of Malaya
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

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