Economics of Terrorism: concepts, basic themes, and empirical studies

Observations show that many people involved in what is called as “terrorism”, are not among the poorest people. High-income rather than low-income countries experience terrorism, and sometimes non-economic factors provoke terrorists. In assessing the consequences of terrorism, empirical studies use different methodologies and data for identifying definition, and they achieve the different results because of the differences in levels of analysis (micro or macro), the geographic concentrations, theoretical perspectives and variables.Indeed, it is probably easiest to measure the direct costs of terrorism is the. In other word, an alternative solution for measuring costs emerged from terrorism is to examine all countries’ economic performance compared to the countries with low-level terrorism. Furthermore, many studies have focused on measuring the impact of the terrorist attacks on the whole economy.Another way for assessing the impact of terrorism on Total production is to examine its impacts on the stocks of the various companies’ shares. Some scholars want to solve the aforementioned deficiencies through using temporary data and case studies about the impact of terrorism on economic growth. Aside from the overall costs of terrorism, terrorism gives effect to the economic different parts. This article pays attention to effects of terrorism on tourism, foreign direct investment, foreign trade, and financial markets. The main purpose is to introduce a doctrine for policy-making and counter-terrorist measures.