Macroeconomic Consequences of Terrorist Attacks in Pakistan

摘要

China-Pakistan economic corridor is one of flagship projects in "the Belt and Road Initiatives", it not only will provide energy channels besides the Strait of Malacca but also will greatly shorten the oil transport distance (85%). However, the frequent tribal conflicts and terrorist attacks in Pakistan will threaten the safety of China-Pakistan economic corridor. Based on the classification of the violence in Pakistan, the paper tries to find the source of the conflicts from the economy and politics. This research finds that: the better political environment and more harmonious race relations can greatly suppress the outbreak of the conflict; Unemployment is positively related to the number of terrorist attacks; Economics plays an important role in all kinds of conflicts. Based on the research, the paper offers some advice to reduce the conflict.