This study attempts to establish the relationship between three types of instabilities and economic growth. Political instability, macroeconomic instability, terrorism, and economic growth are analyzed for the period of 1970 to 2019 in Pakistan. The study constructs the indices of the above-mentioned variables by adding some new variables. Results show that terrorism, political instability, macroeconomic instability, and GDP per capita have long-run associations. GDP per capita and political instability is positively related to terrorism. It indicates that political instable environment paves the way for terrorists to achieve their targets in Pakistan. However, the positive association of GDP per capita to terrorism is due to uneven income distribution pattern. It stimulates deprived groups to become a part of violent activities. Furthermore, results show that macroeconomic performance of a country has no significant effect on terrorist activities but persistent poor performance increases the probability of terrorism. Therefore, in the long-run, macroeconomic instability has positive influence on terrorism. Causality relationships indicate no link between political instability and macroeconomic instability. However, terrorism causes both political and macroeconomic instability in Pakistan.

The study analyses the impact of urbanization on economic growth of Pakistan from 1975-2012. Conceptual framework of the present theory is based on the theory of Lewis (1954) and Tadaro (1976). Co-integration analysis is used to examine the impact of urbanization on economic growth of four sectors namely agriculture, manufacturing, industrial and services sector of the economy. Results show that urbanization affect economic growth significantly and they have a long run relationship. It was found that urbanization is an important determinant of economic growth but it has negative impact on economic growth in agriculture sector. However, it has positive impact on economic growth in industrial, manufacturing and services sector.

The current study investigates the interconnection of globalization, terrorism, and economic growth in Pakistan over the period of 1972 to 2019. ARDL co- integration bound test is used to establish the relationship among these variables. Limited empirical evidence is available on terrorism and globalization, particularly with reference to Pakistan. The empirical evidence confirms the long-run association among globalization, terrorism, and economic growth. Growth in per capita GDP increases terrorism because higher economic growth is not evenly distributed in Pakistan, while globalization reduces terrorist activities. Globalization, particularly political integration with rest of the world provides technical and financial assistance to overcome terrorism in Pakistan. Moreover, there is unidirectional causality from GDP growth to terrorism and bidirectional causality between globalization and terrorism. However, no evidence of causality is found between globalization and economic growth. This indicates that Pakistan is unable to get economic benefit from globalization because of its internal structural issue.

No abstract

The current study investigates the interconnection of globalization, terrorism, and economic growth in Pakistan over the period of 1972 to 2019. ARDL co- integration bound test is used to establish the relationship among these variables. Limited empirical evidence is available on terrorism and globalization, particularly with reference to Pakistan. The empirical evidence confirms the long-run association among globalization, terrorism, and economic growth. Growth in per capita GDP increases terrorism because higher economic growth is not evenly distributed in Pakistan, while globalization reduces terrorist activities. Globalization, particularly political integration with rest of the world provides technical and financial assistance to overcome terrorism in Pakistan. Moreover, there is unidirectional causality from GDP growth to terrorism and bidirectional causality between globalization and terrorism. However, no evidence of causality is found between globalization and economic growth. This indicates that Pakistan is unable to get economic benefit from globalization because of its internal structural