Terrorism: An Analysis on its Economic Consequences in Nigeria, Pakistan and Turkey

Abstract

This study examines the effects of terrorism activities, such as, attacks, deaths, and injuries on the economies of Nigeria, Pakistan, and Turkey based on different economic variables, such as, unemployment, inflation, and foreign direct investments. The study also aims to determine the differences in impact ranging from low-middle income countries, like Nigeria and Pakistan to middle-upper income countries, such as Turkey. It is evident in low-middle income countries that fatalities and number of attacks are higher which is responsible for their economic collapses and an impact on all the economic variables stated in this by using a cross-country analysis and a multiple regression test, this research also proves that increase in terrorism activities have an indirect relationship with FDI inflows. Furthermore, a grow in terrorism activities could also increase inflation, and unemployment rates.