Terrorism and India an economic perspective

Authors: Alam Khan Mario Arturo Ruiz Estrada Zarinah Yusof

Publish Date: 2015/06/24

Volume: 50, Issue: 4, Pages: 1833-1844

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Abstract

This study seeks to evaluate the terrorism and economic performance of the economy of India from the year 2004 to the year 2013 The analysis of the study is based on the model of Economics of Terrorism Monitoring Model ETMModel introduced by Khan et al Qual Quant 2015 The main objective of this research study is to scrutinize the terrorism situation in the economy of India The effects of terrorism on the economic performance is measured by economic desgrowth The economic desgrowth generated from economic growth rate due to terrorism in the year 2004 for the Indian economy is −091  while the economic desgrowth for the year 2013 of the same economy is −205  The study concludes that terrorism is one of the main issue of the Indian economy from the economic perspective Indian government may work with Pakistan to resolve the issue of Jammu and Kashmir to overcome the terrorism issue It is also needed for the Indian economy to make harmony between Muslims and Hindu with in the territory of IndiaWe take into account that terrorism incident and attacks can take place at any place and any time because these incidents are unpredictable and uncertain The frequency rates of nominated twelve different terrorism activities and types of terrorist attacks are as follow suicide β 1 assassination β 2 hijacking β 3 kidnapping β 4 barricade β 5 bombing β 6 unknown β 7 armed assaults β 8 unarmed assaults β 9 infrastructure β 10 number of killed β 11 and number of wounded β 12 The various terrorism incidents and types of terrorist attacks have different intensity depending on their nature magnitude and location The hypothesis of the ETMModel states that the terrorism incidents cannot be examined with precision as their nature is irregular and uncertainThere are three types of relationship between national terrorism vulnerability rate µT and economic desgrowth On one side when the national terrorism vulnerability rate is very high the economic desgrowth will be high On other side when the terrorism vulnerability rate µT is low the economic desgrowth will also be low The application of “The Dynamic Imbalanced State DIS” which is presented by Ruiz Estrada and Yap 2012 explains that it is dynamic and changes continuously

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