Terrorism And Economics

Terrorism and Economy2007After the emergence of the 11th September the world economists were often concerned with the research of the allude of terrorist actions on the scrimping of or so definite states and the thriftiness of the world in general In this I m going to briefly outline the main consequences of the terrorist actions on the miserliness and how this could be managedAccording to the US Congress , Joint sparing Committee (US Congress Joint Economic Committee , 2002 ) there exist four main effects of the terrorism on the economy . The fist effect lies in the reduction of the slap-up stock both human and physical . The second impact is higher level of uncertainty caused by the terrorist attacks (Enders , Sandler Parise , 1992Third , in to defend from the terrorism and prevent future attacks countries , there arises a lease of counter-terrorism expenditures , which shift the main country coronations from production to security . eventually the fourth cause of the terrorism on the economy is heavily negative impact on certain industries like touristry (Enders , Sandler Parise 1992 just about researchers propose that for the sake of the investigation of the possible threats of the terrorism on the economy the economists have to apply a model , which impart investigate the possible risks of the terrorism on world economy . In the research Terrorism and the World Economy Alberto Abadie and Javier Gardeazabal oeuvre the influence terrorism on the open world economy (Abadne Gardeazbbal , 2005In the course of the research they managed to prove that the impact of terrorist attacks on copious seat of government is not very high . Becker and Murphy (2001 ) showed that the event of the September 11th caused the loss of 0 .

06 of the to the conclusion that terrorism does not have a long-term effect on the economic activity of the country (Becker Rubinstein , 2004However , terrorism does have a signifi thunder mugt impact on the international investment tendencies , unified investors considering terrorism among the main important factors , which has an impact on the outside(prenominal) investment decisions (Global Business Policy Council , 2004Enders and Sandler investigated of terrorism on capital flows across countries . They proved that because of the terrorist actions Spain lost 13 .5 of direct investment during 1976- 1991 , Greece lost 11 .9 from 1975 to 1991 (Enders and Sandler , 1996In spite of the fact that terrorism is not so closely related to economy we still can see the negative results of it on some particular aspects of the economy . This is very obvious for the countries , in which the main sector of economy is tourism (up to 20 of the economy . If we take for example much(prenominal) states as Indonesia , Egypt , Kenya and Tanzania where terrorist acts by Al Qaeda were conducted . The result of this was flock cancellation of booking from the European tourists (Dasgupta 2005It should also be mentioned that in some cases Western countries restrict and even stop flights for the sake of the protections of their citizen . Some times it takes rather a long...If you want to get a full essay, order it on our website: Orderessay

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