The Impact of Economic Determinants on Terrorism in Iraq During the Period 2000-2020

Authors

Department of Economic, University of Salahaddin, Erbil, Iraq.

Abstract

There are many economic, social, and political factors that influence the severity of the consequences of terrorism. In this study, we try to show the significance of the most important macroeconomic determinants that affect the consequences of terrorist operations, which were measured by the Terrorism Index TI, in Iraq during the period 2000 to 2020. Descriptive statistics and econometric methods such as; Auto Regressive Distributed Lags ARDL, Error Correction Model ECM, Variance Decomposition VD, and VAR Impulse Response were used for this purpose. The results showed that the inflation rate has a positive and significant impact on terrorism in Iraq in the long run, while GDP growth, unemployment, income inequality, and political stability have an inverse relationship with terrorism in the long run. As for the short run, the inflation rate has a positive relationship with TI, while the GINI coefficient affects TI inversely. The rate of speed of adjustment from the previous year’s disequilibrium in TI added to the current year’s equilibrium is 81.9%.

Keywords