Role of economic factors in terrorism in Pakistan

This research paper analyzed the role of economic factors in terrorism in Pakistan empirically using the annual time series data, covering the period from 2001 to 2014. The stationarity of the variables was checked by applying the augmented Dicky-Fuller unit root test. The NLS and ARMA (least square regression) model have been used as analytical techniques. The results revealed that except poverty all other economic factors (unemployment, income inequality, GDP per capita, literacy rate, population density and inflation rate) included in the study show the positive and significant impact on terrorism in case of Pakistan. In the recommendations the study suggests that economic factors plays role in terrorism in Pakistan. Government should need to control these factors by giving possible and satisfactory solution.