How Does Terrorism Affect the International Trade of Muslims Countries?

Quality and Quantity 52(5), 2255-2268.

Posted: 5 Dec 2017 Last revised: 13 Aug 2018

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

Tahir Muhammad

Comsats University Islamabad

Alam Khan

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

Date Written: November 30, 2017

Abstract

In this paper, we propose a new model, namely the terrorism-trade and investment diversion simulator (TTID-Simulator). The simulator allows us to analyze the impact of terrorism on trade and investment diversion anywhere and anytime. Our central objective is to use the new model to evaluate the trade and investment diversion due to terrorism, and the ultimate effect on the inflation rate, unemployment rate, and poverty rate. More specifically, we apply TTID-simulator to evaluate the economic effect of terrorism on Afghanistan, Iraq, Pakistan, and Syria, four countries which suffered a lot of terrorist activity in recent years. The focus of our analysis is trade and investment diversion, and our sample period runs from 1980 to 2016.

Keywords: Terrorism, Policy modeling, Afghanistan, Iraq, Pakistan, Syria

JEL Classification: R11, R12

Suggested Citation

Ruiz Estrada, Mario Arturo and Park, Donghyun and Muhammad, Tahir and Khan, Alam, How Does Terrorism Affect the International Trade of Muslims Countries? (November 30, 2017). Quality and Quantity 52(5), 2255-2268. . Available at SSRN: https://ssrn.com/abstract=3080163

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

Tahir Muhammad

Comsats University Islamabad ( email )

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

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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