Online ISSN 2286-0266
Print ISSN 1223-0685
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Adrian-Ioan DAMOC
Academia de Studii Economice din Bucureşti
When we consider the aftermath of a terrorist attack, the latter being a form of political violence, we intuitively consider the human losses caused, the instability rising in the wake of such an attack and the short- and medium-term socio-political effects. However, the ramifications of terrorism reach into economic matters as well: on the one hand, there is the influence it has on national and regional economies (such as property damage, the influence on financial markets or the distortion of the flow of foreign direct investments – also referred to as FDIs); on the other hand, terrorist groups engage in cross-border economic activities of their own in order to finance their operations, most notably through black market transactions, human trafficking and illegal drug trade, among others. The present paper seeks out to investigate five economic aspects involving terrorism: the effects on FDIs, the macroeconomic effects, the impact on financial markets, the role of foreign aid and transactions undertaken by terrorist groups for self-financing. Each of these five topics will be analysed on the basis of the existing available literature and recent information regarding the activities of terrorist groups.

ŒCONOMICA no. 2/2015
Keywords: terrorism, geoeconomics, FDI, foreign aid, Islamic State, international relations, financial markets
JEL: F52, F69
An Overview of the Geoeconomic Effects of Terrorism [O investigaţie a efectelor geoeconomice ale terorismului]