Skip to main content
Top

2017 | Book

Globalization and the Economic Consequences of Terrorism

insite
SEARCH

About this book

This book analyzes the effects of economic, social, and political disruptions that have come with integration into the global economy for countries in five different regions and the developing world as a whole. One consequence of such disruptions is increased levels of terrorism in many countries. In addition, the effects of terrorism on economic activities were measured. Although the patterns vary for the regions, there is no doubt that connections exist. Political links with outside countries have mitigated some of the negative consequences of entering into greater contact with other countries. There is less evidence that the increased terrorism from these disruptions has had negative effects on foreign investment and tourism. This volume will provide essential materials for researchers and students interested in the connections between globalization and terrorism and between terrorism and accompanying negative economic consequences.

Table of Contents

Frontmatter
Chapter 1. Globalization, Terrorism, and the Economy
Abstract
This chapter introduces the ideas of globalization and terrorism with definitions. It then explores the previous literature that deals with these topics as well as the idea that terrorist groups will launch attacks to weaken the economy. The discussion will focus on previous studies of the effects of terrorism on tourism and foreign investment. The two basic hypotheses derived in the chapter are that globalization will lead to social disruptions that then lead to terrorism, and that terrorism in turn will have negative effects on tourist visits and foreign investment stocks.
Brenda J. Lutz, James M. Lutz
Chapter 2. Methodology
Abstract
This chapter focuses on the databases that are used in the volume including the Global Terrorism Database which will serve as the source for materials on terrorist incidents and casualties. The measures on globalization will be drawn from materials published by the Swiss Institute of Technology, which include measures of economic, social, and political globalization. Materials on tourism and foreign investment are drawn from UN sources such as theStatistical Yearbooks. The primary methodology will not only rely on basic correlations to test the two hypotheses but also include the use of lagged effects in case the influences took some time to have an impact.
Brenda J. Lutz, James M. Lutz
Chapter 3. Latin America
Abstract
This chapter deals with the countries in South America, Central America, and the Caribbean. There are indications that globalization in all three of its forms was linked to more occurrences of terrorism measured on a per capita basis. There also are some indications that terrorism was linked to declines in tourism and foreign investment, but there are other linkages in the opposite direction from what was predicted.
Brenda J. Lutz, James M. Lutz
Chapter 4. The Middle East and North Africa
Abstract
This chapter includes the countries in the Middle Eastern and the North African region. The strongest relationships that appear were between a measure of social globalization and outbreaks of terrorism in the region. The effects of other forms of globalization were more muted. There are no consistent negative relationships between terrorism levels and tourist visits and foreign investment for this region.
Brenda J. Lutz, James M. Lutz
Chapter 5. Asia and Oceania
Abstract
This chapter comprises the countries in South Asia, Southeast Asia, East Asia, and states in Oceania. This region is quite diverse when compared to Latin America and the Middle East. The results show few indications that globalization was linked to more terrorism; in fact, there was evidence that the countries less integrated into the world system had higher per capita levels of terrorism. There are few indications that foreign investment was affected by higher levels of terrorism. There is some evidence that tourist visits were negatively affected in some time periods but the patterns were volatile.
Brenda J. Lutz, James M. Lutz
Chapter 6. Sub-Saharan Africa
Abstract
This chapter includes analyses for the countries of sub-Saharan Africa. Globalization is linked with higher levels of terrorism in the years in the 1970s and 1980s. In later years, the linkages were more limited and indicated that countries less integrated with the outside world were more vulnerable. The terrorism levels had virtually no effects on foreign investors, and there were only a few indications of any negative effects on tourism.
Brenda J. Lutz, James M. Lutz
Chapter 7. West Europe and North America
Abstract
An analysis of the developed countries in West Europe and North America (Canada and USA) indicates that the relationships in this part of the world are different from the other countries and regions analyzed. The countries that were the least integrated into the global system generally suffered from more terrorism. Any linkages between terrorism and levels of foreign investment appeared to be random. In the case of tourism, more terrorism was counterintuitively linked with higher levels of tourism for most of the time period.
Brenda J. Lutz, James M. Lutz
Chapter 8. Conclusions
Abstract
In this chapter, there are additional analysis for the effects of globalization on terrorism and the economic effects of terrorism for all the developing regions. The results for all the developing countries indicate that globalization in various forms often did lead to higher levels of terrorism. Foreign investment levels, however, were unaffected by terrorism. In the case of tourism, any effects for all the developing countries were random. Overall, the strongest evidence indicated that globalization in different ways was associated with later terrorism. There were relatively few indications that terrorism had effects on changes in foreign investment or tourism, which would indicate that more research is necessary.
Brenda J. Lutz, James M. Lutz
Backmatter
Metadata
Title
Globalization and the Economic Consequences of Terrorism
Authors
Brenda J. Lutz
James M. Lutz
Copyright Year
2017
Electronic ISBN
978-1-137-50394-7
Print ISBN
978-1-137-50393-0
DOI
https://doi.org/10.1057/978-1-137-50394-7

Premium Partner