Humaira KHANUM*, Zainab JEHAN** and Tahir MUKHTAR***
Abstract
This research strives to investigate the socioeconomic and political fallouts of terrorism for
developing and developed countries over the time period from 1970 to 2016. For this purpose,
the research has used separate indicators for social, economic and political dimensions
of the economy; namely, per capita income is taken as an indicator for economic performance;
secondary school enrollment is used to capture the societal impact of terrorism, and
the political dimension is captured through political stability index. For the terrorism variable,
four different measures, the total number of terrorist incidents, the total number of injured
persons, the total number of persons killed and a composite index of terrorism, have
been employed. The major finding of the study is that terrorism has adverse economic, political
and social fallouts for both developed as well as developing countries. In developing
countries, however, the severity of the terrorism consequences is far greater than in developed
countries.
