The Impact of International Terrorism on Economic Growth in OECD Countries

Abstract

Terrorism is a phenomenon that influences various disciplines and directly impacts international relations and the global economy. Studies in this field encompass different countries and groups of nations. The aim of this study is to determine the effects of terrorism on international relations and economic growth at the global level. The relationship between terrorism and economic growth is examined specifically within OECD countries, covering the period from 2010 to 2022. This study contributes to the literature by investigating the relationship between terrorism and the economy, focusing on the established model, methodology, and relevant country groups. Dynamic Panel Data Analysis is employed, utilizing the 2-stage System GMM method. According to the analysis, a one unit increase in global terrorism is found to decrease economic growth of countries by 0.19 units at the international level.