Economic Impacts of Global Terrorism: From Munich to Bali

40 Pages Posted: 26 Mar 2006

See all articles by James R. Barth

James R. Barth

Auburn University; Milken Institute

Tong Li

Milken Institute

Don McCarthy

Milken Institute

Triphon Phumiwasana

Milken Institute

Glenn Yago

Milken Institute

Date Written: February 20, 2006

Abstract

This paper examines the impact of terrorism on economic growth and capital formation using data for 152 countries from 1970 to 2003.During the past thirty-five years, the world has witnessed nearly twenty thousand terrorist incidents. The increasingly global scope of terrorism has raised important questions about its economic impacts in countries around the world. We find that terrorist incidents have a negative and significant impact on economic growth and capital formation. We also find that the terrorist target matters. Specifically, terrorist incidents targeting private properties are negatively associated with both growth and capital formation.

Keywords: Terrorism, panel regression, economic growth, investment, capital formation, terrorist incidents, fatality, injury

JEL Classification: E60, E20, E22, F43, O4, O11, O16

Suggested Citation

Barth, James R. and Li, Tong and McCarthy, Don and Phumiwasana, Triphon and Yago, Glenn, Economic Impacts of Global Terrorism: From Munich to Bali (February 20, 2006). Available at SSRN: https://ssrn.com/abstract=892033 or http://dx.doi.org/10.2139/ssrn.892033

James R. Barth

Auburn University ( email )

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Milken Institute ( email )

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Tong Li (Contact Author)

Milken Institute ( email )

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Don McCarthy

Milken Institute ( email )

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Triphon Phumiwasana

Milken Institute ( email )

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Glenn Yago

Milken Institute ( email )

1250 Fourth Street
Santa Monica, CA 90401
United States

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