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

5. Results… Negative Economic Development: Measured by real GDP growth ratetradeunemployment levels Terrorist Activity Casualties 1986-2002Incidents 1986-2002 Selection Problem Heterogeneous societyLiberal democracies Exception: external factors maintaining economic growth. EXAMPLE?

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

7. 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