Terrorism and Economic Repercussions (Essay Sample)

ENDEMIC TERRORISM AND TERRORISM'S ECONOMIC REPERCUSSIONS
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ENDEMIC TERRORISM AND TERRORISM'S ECONOMIC REPERCUSSIONS
Terrorism that is caused by artificial divides of tribes, families, and ethnic groupings is known as endemic terrorism. Terrorism influences the economic performance by disrupting income and production trends and diverting funds and resources away from economic activities and toward counter measures. Violence destroys a country's capital, reducing its economic viability. The paper discusses these effects by doing an annotated summary of the book "Shock and awe? Fiscal consequences of terrorism'' (Cevik and Ricco, 2020).
From 1970 to 2016, these researchers focused into how the magnitude and duration of terrorism influenced national budgets in 156 industrialized and developing nations. The statistics indicate that counterterrorism reduces income taxes, particularly in countries where terrorism is becoming endemic, with a high series of assaults and casualties per unit. This consequence is enhanced in scenarios that account for suspected endogeneity. Whenever different socioeconomic, sociological, and administrative factors are considered, there is substantial evidence that extremism is connected to a significant spending increase as a proportion of gross Domestic product (GDP). In nations with constant attacks and increased mortality, terrorist activity has a bigger impact on the national expenditures and revenues. Our research also shows that emerging countries' public finances are more vulnerable to terrorism than wealthier, more diversified ones.
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