Do good governance and Terrorism Distract economic growth? An Evidence from Pakistan

Abstract

 Current study endeavors to examine the effect of terrorism and good governance on economic growth of Pakistan. Quantitative approach has been used and secondary data is collected for the period of 2002-2016. Multiple linear regression is used for the empirical analysis with the help of EVIEWS7 software. This study exposes that good governance indicators containing control of corruption, rule of law and voice and accountability have insignificant impact on GDP. Results may differ by increasing the sample size. Results of the study disclose that number of terrorist attacks have significant and negative impact on GDP%. Terrorist outbreaks have negative impact on the growth of economy. So Government should take proactive measures to switch terrorism.  To the greatest of my familiarity, this is the main study which intention is to test the impact of good governance as well as terrorism on economic growth (GDP) in the context of developing country like Pakistan.