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Terrorism and impacts on
macro and socio economicindicators in Pakistan
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Group Members
Rafia Razzaq
Maryam Khalid
Farah Kanwal
Jawad Hassan
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Introduction
Terrorism is the biggest threat to Pakistansprogress. It roots can be traced back from
1979,
when there was an effort to kick out Russia
from
Afghanistan. After 9/11 the phenomenon
of terrorism has severely changed the socio-
economic and geo-political scenario of theworld. Terrorism is a tree and extremismprovides
balance food to grow the tree properly. . In
simple words terrorism is the state of fearcreated
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Objective of this study
In this study our objective is impact of
terrorism on macro and socio economic
indicators. For this purpose we used the
data from 2001 to 2012. This impact is
explain by the graph.
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What is a Terrorism
It is difficult to tell the meaning of terrorism butit can be briefly said that the terrorism is state
of
mind rather than activity. Terrorism means to
impose ones own interpretations of religious
teachings, socio-cultural, and politico-economic
values and norms through violence in the
society.The common understanding about theterrorism is
that Terrorism is an organized system of
intimidation, especially for political ends.
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Farah Kanwal
IUB1276132
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Literature Review
Arshad ali ( ) study was economic cost of terrorism in
Pakistan. The main objective of this study was
terrorism in
Pakistan in a multi-dimensional perspective. And the
impact terrorism on GDP growth, it also takes into
account the impact of FDI and along with the social
sector.
Sabir Michael(2007) was conducted by the study ofTerrorism a socio-economic and political
phenomenon in
Pakistan. He was observed that terrorism had not
only
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Sultan Mehmood(2013) found the
negative effect of terrorism at least for 2
years of the most macroeconomic variables
and finds evidence that terrorism,
particularly
in emerging economies, might causesignificant
macroeconomic costs to the economy.
Umar Daraz at-al(2012) was identify thesocio-
Economic causes, impacts and
psychological
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TYPES OF TERRORISM
Revolutionary Terrorism
Nationalist Terrorism
Religious Terrorism
Group Terrorism
Ethnic Terrorism
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CAUSES OF TERRORISM
Helplessness and Hopelessness
Political and Economic Deprivation
Influence of Communist Regimes
Poverty and Economic Exploitation
Easy Access to Weapons and
Modern
Technology
Lack of Democracy and Dictatorship
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Rafia Razzaq
IUB1276124
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Methodology
The purpose of this study is to describethe
most important theoretical contributions
to study the impact of terrorism on the
macro economy. And also describe the
attacks, deaths and impact of the
macroeconomics and socio- economic
indicators. The relationship is show by
graphs.
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Socio-Economic Determinants
of TerrorismThe secondary factors that have a relative
importance in the existence of terrorism
comprises of foreign intrusion, poverty
andEconomic deprivation, unemployment,
tribalism and feudalistic nature of the
socialstructure play their role to dominated
human
thinking and bring inconsistency and
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Macroeconomics indicators
In which we show the relationship GDP,
Inflation, public debt and foreign direct
investment. We used the descriptive
analysis. First the GDP is negative
related
on terrorism. We have used the data
2001
to 2012 in Eviews run the fowolling
result.
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1
2
3
4
5
6
7
8
01 02 03 04 05 06 07 08 09 10 11 12
GDP in persantage
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Second impact of inflation on terrorism is
positive.
0
4
8
12
16
20
24
01 02 03 04 05 06 07 08 09 10 11 12
INFLATION
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Third the impact of FDI on terrorism is
negative.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
01 02 03 04 05 06 07 08 09 10 11 12
FDI
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And last the impact of external debt on
terrorism is positive.
3.0E+10
3.5E+10
4.0E+10
4.5E+10
5.0E+10
5.5E+10
6.0E+10
6.5E+10
01 02 03 04 05 06 07 08 09 10 11 12
External Debt
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Jawad Hassan
IUB1276138
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Conclusion
Terrorism is a very sensitive issue inPakistan. Economic literature highlightsvarious factors affecting terrorism.Terrorism hits the economy directly andindirectly by effected FDI, GDP, inflation,lowering economic growth, risingunemployment and poverty. We collect
the data from 2001to 2012. So thats whyweconclude that terrorism is badly impact ofmacro and socio economic indicators.
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RECOMMENDATIONS
Understanding the root causesof terrorism not only institutor of Madrassa
but
the educational and economic system need
reforms.
Pakistan needs justice based economicand
educational system.
It is the duty of the social scientists,
nationalist, economic and political thinkers to
launch a nationwide movement for a safe and
secure Pakistan.
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Thanks
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