Terrorism And Terrorism Essay

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Literature Review: A. Terrorism and its Economic Cost: Even though terrorism has existed in countries throughout history, there has not found long-term impact. The reason for that it seems to be less significant and less interesting for scientists but, after 11 September terrorist attacks, it seems to be that it has changed. (Bergersen and Lizardo, 2004). Now, terrorism and its effects have moved to remarkable research topics. After 11 September, terrorist attacks have increasing trend all over the world. Even if it seems that terrorism is one of the main problems of the Middle East, European countries have suffered from terrorism and its painful results. When terrorism being the case, besides the human lives, other economic activities need to consider as a study topic. There is no doubt that terrorism has a negatively significant impact on countries’ economy. A lot of studies examine the relationship between terrorist activities and their macroeconomic results. In this context, Blomberg, Hess and Orphanides (2004) investigate effects of terrorism on growth. They find that there is a negative and significant relationship between terrorism and economic growth in regard to increased government expenditures and reduced national investment. Further, their findings show that terrorism activities affect developing countries more deeply than developed countries. According to Lenain, Bonturi and Koen (2002), because of increase in terrorist activities, military expenditure

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