This paper tests the impact in which terrorism has upon economic growth. There is some discrepancy as to how large the impact of terrorism is on economies. In order to understand this relationship we run traditional growth regressions while adding terrorism variables in order to assess the impact. The sample which we use contains both terrorism and GDP data from 30 different countries from the years 1968 through 2007. We run four separate models each of which allow us to examine terrorisms effects in different ways. The first regression that is ran is a panel regression that uses GDP per capita growth as the independent variable. The second uses the log difference of GDP per capita in an attempt to control for variance. The third regression is a cross-sectional regression aimed at understanding terrorisms effects on long run GDP per capita growth. Our fourth and final model is an attempt to recreate the panel regression ran by Bloomberg, Hess and Orphanides. The results that we obtained from our regressions were inconclusive on the effect which terrorism has on economic growth.


Michael, Charalambos



Publication Date


Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis



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