The Effect of Terrorism on Economic Growth in Southern Thailand

Authors : Awatif Yunu; Purbayu Budi Santosa

Volume/Issue : Volume 6 - 2021, Issue 6 - June

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The data used is in the form of quarterly data starting from 2004Q1 to 2018Q4. The Autoregressive Distributed lag (ARDL) approach is applied to see the cointegration between variables in the model using the Eviews 10 application. The results obtained indicate cointegration between government spending, investment, terrorism, and unemployment on economic growth in Southern Thailand. Government expenditure and investment variables have a positive and significant effect on economic growth only in the short term, while they do not get significant results in the long run. The variables of terrorism and unemployment have a negative and significant effect on economic growth in Southern Thailand, both in the short and long term. The implication is that the government must eradicate terrorism, focus government spending on the productive sector, equitable development to attract investors to invest and improve the workforce's skills.

Keywords : Terrorism, Economic Growth, ARDL Model, Southern Thailand.


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31 - October - 2021

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