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Explanation & Answer
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Running head: RESEARCH
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Research
Name
Institution
RESEARCH
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Research
Part 1: Article Review
1. Study description (addressed in the annotated bibliography)
2. Critical Analysis
Saha and Yap, (2014) present a compelling case in the way that they handled the
research. The study which went on for around ten years presents convincing results. However,
the findings are not very convincing as they do not provide concrete measures of their constructs.
The use of terms such as high-level political risks and moderate political risks which have not
been substantiated makes the findings hard to rely on. Raza and Jawaid (2013). Use annual time
series data from 1980-2010. This research is thus very convincing. Also, the use of mathematical
models such as ARDL to evaluate the findings also presents a compelling case for the findings.
Also, they explain the application of the findings in reducing terror in Pakistan as a means of
boosting tourism.
As in the previously discussed research, Yap and Saha (2013) present a strong case for
their research in the ten years they worked on the issue. The findings, however, in this article, are
more applicable than in the previous case. Their conclusion that political volatility and terrorism
together cause serious damage to the tourism industry is useful in designing the tourism industry
around the political climate. Fatima et al. (2014) present a compelling case in comparing the
GDP in Pakistan and India before and after terror activities. However, they fail to substantiate
how the GDP drop is affected directly by terrorism. As such, their findings are not easily
applicable to the core causes of the GDP drop are not identified. Finally, Lee (2016) presents the
most comprehensive findings among the five sets of researchers. The application of his findings
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is based on the fact that investments drop in the wake of terrorism and thus governments should
invest more in terror prevention as a means of improving the economy.
Part 2: Literature Review
Many researchers have different opinions regarding the issue of terrorism and its
contribution towards economic growth. A majority of the reviewed articles identified terrorism
as leading to a decline in the economy of the various countries. Also, the researchers identify a
strong link between political instability and the fear of tourists to visit the country destinations.
One issue identified with decreased economic activity is the repeated terror acts as well as
political instability. For instance, Saha and Yap (2014) found out that the effects of political
instability on tourism are far more severe as compared to the effects of one-off terrorist attacks.
This links to the issue of decreased economic activity due to the political instability.
The researchers identify a significant decrease in the GDP of a country that is affected by
terror or political instability. This is observed by Fatima et al. (2014) in research in India and
Pakistan. However, the researchers do not establish the reason why the GDP falls with increased
terrorism. Raza and Jawaid (2013) report a negative relationship between tourism and terrorism.
The study suggested that the increase in terrorism led to a substantial decrease in the level of
tourism in Pakistan. Although this study connects a decrease in tourism to terrorism, it does not
identify the relationship of the economy and terrorism and how it affects the economic activities
in any one country.
Another issue identified by the researchers is the issue of investment and development in
politically unstable countries as well as terror-struck countries. Yap and Saha (2013) explored
UNESCO-listed tourism destination countries and political instability in those countries. As
such, they found out that tourism development was unlikely to prosper in those countries which
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were perceived as having political risks. Further, research by Lee (2016) suggests that foreign
investment which is considered crucial for the development of many countries was limited in the
wake of terror. The researchers thus provide a connection between tourism decrease and terror
activities. However, the economic effect of this terrorism has not been studied in depth, and thus
no sufficient research presents findings on the topic. This research will, therefore, embark on
filling the gap and finding how terrorism affects the economy of a country. Therefore, the
research will focus on identifying the ways that terrorism affects an economy.
Part 3: Research Design
From the literature review, it is evident that researchers have not identified how terrorism
affects the economy. As such, there is the need to research the ways that terrorism affects the
economy. As such, the research will focus on finding the direct ways of terrorism affecting the
economy. The research problem, as a result of this, is what ways that terrorism directly affects
the economy. The purpose of this research, therefore, is to come up with a list of channels that
are affected by terrorism thus affecting the economy directly. Identifying the channels is crucial
to designing them to combat any negative effects of terror on the economy.
Methodology
The research will be a qualitative study whereby the different economic sectors of
countries affected by terrorism will be reviewed. As such, the study will focus on collecting data
from 10 countries which have been hard hit by terrorism. The countries where data will be
collected from including Iraq, Somalia, Pakistan, Afghanistan, Thailand, Libya, Yemen, Syria,
Nigeria, and India. As such, data will be collected from the countries’ economic websites as well
as the UN data repository. The data to be collected is the worst hit economic areas in...