Investigating the Impact of Terrorism on Economic Growth in the Middle Eastern Countries: A Panel Data Approach

Terrorism is a complex phenomenon without a comprehensive definition of it, as many scholars have defined the term terrorism based on their own understanding of it. Terrorism and its consequences go beyond the aspects of fear, terror and loss of life and property. The link between security and economic growth is essential, because economic development cannot happen without security, and peace and security without growth may not be sustainable. According to the literature, terrorism has a direct impact on economic growth. Terrorism, conflict and violence destroy direct foreign and human capital and weaken political and social institutions that have a positive impact on economic growth. With this in mind, the purpose of this study is to investigate the effect of terrorism on economic growth in Middle Eastern countries during the period 2018-2000 using the combined data method. The results of this study showed that the number of terrorist incidents and those killed in terrorist attacks had a negative and significant effect on the economic growth of the studied countries. According to other results, it has been observed that human development index, foreign direct investment, bank credit and foreign trade have a positive and significant effect on economic growth. Inflation rate has a negative and significant relationship with economic growth