The Relationship of Economic Growth And Terrorism with the Human Development Index: A Causality Analysis on MENA Countries

Günay Özcan,Cigdem Karter

doi:10.47577/tssj.v11i1.1625

Günay Özcan, Cigdem Karter

Open Access

https://doi.org/10.47577/tssj.v11i1.1625

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Abstract

Examining the human development of societies is one of the important economic policy practices of recent times. Therefore, economies steer the sub-components of human development and their policies implemented by researching the factors that affect such sub-components. In this context, the aim of this study is to examine the relationship between economic growth and terrorism with human development in 12 selected MENA countries in the period of 2002-2017 by the panel causality method. The findings obtained as a result of the panel causality analysis show that both terrorism and economic growth have bidirectional causality with the human development index throughout the panel. A causality relationship has also been found in many countries on a country basis

Highlights

The concept of economic growth is of great importance in determining the development levels of countries
This study examines the economy of the Middle East and North Africa (MENA) countries, which is a multi-layered and complex region in the context of the relationship between human development and economic growth and terrorism
The findings obtained as a result of empirical analysis show that there is a causal relationship from terror to human development index in Iran, Morocco, Saudi Arabia, Tunisia, and Israel, and it was concluded that human development is the cause of terror in countries such as Algeria, Jordan, Morocco, and Yemen

Summary

Introduction

The concept of economic growth is of great importance in determining the development levels of countries. Development does mean increasing production and per capita income, and changing and modernizing the economic and socio-cultural structure in an underdeveloped society. After the Second World War, countries turned towards a growth-oriented approach in order to achieve their development goals. Before 1970, the level of development was evaluated on economic facts such as income, capital, investment, and industrialization (Aydın, 2019: 3334). With the globalizing world since the 1990s, it has become a worldwide view that it is not right to explain the development levels of ISSN: 2668-7798 www.techniumscience.com societies only with economic facts and that economic growth should be human-oriented (Erdem and Çelik, 2019: 15)

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