1. RESEARCH QUESTION:
what effects do terrorist networks in the Middle East have on the development of the regional economy?
By Julia Yrani

2. Selection Question
Why do countries fall to terrorism?
(Piazza 2006)

3. Selection Question Conclusion
NOT rooted in poverty
Terrorism positively related to…
Heterogeneous society
Liberal democratic government
(Piazza 2006)

4. Performance Question
Note: A higher presence of casualties is connected to a low or negative trade and gdp growth
(CIA Factbook, Piazza 2007)

5. Results… Selection Problem Terrorist Activity
Negative Economic Development: Measured by
real GDP growth rate
trade
unemployment levels
Terrorist Activity
Casualties
Incidents
Selection Problem
Heterogeneous society
Liberal democracies
Exception: external factors maintaining economic growth.
EXAMPLE?

6. Give me some real stuff!
Note: Lebanon’s heterogeneous society is connected to its poor economic development. Vice versa for Kuwait
Israel exception because United States foreign aid bolsters economy
(Piazza 2007)

7. My access to empirical data
The Path Forward…
external shock to economy measures
short term- single unique markets
Long term- macroeconomic aggregates
My access to empirical data
…Academic tourism!

8. Bibliography