1. TERRORISM AND THE MIDDLE EAST BY: Julia Yrani

2. So, what’s the question! • Research question: • What effects do terrorist networks in the Middle East have on the development of the regional economy over the last ten years? • Selection question: • Why do countries fall to terrorism? • Performance question: • How does terrorism affect the economy?

3. Selection Question independent variable(s): Number/ stability of political parties; ethno-religious diversity; population size Dependent variable(s): Causalities due to terrorism & Terrorist incidents  According to the Social Cleavage Theory, more diverse societies, in terms of ethnic and religious demography, and political systems with large, multiparty systems are more prone terrorism 1. Piazza, James1. "Rooted in Poverty?: Terrorism, Poor Economic Development, and Social Cleavages." (2006): 159-73. Web. 28 Sep 2009. <http://www.politicalscience.uncc.edu/jpiazza/PiazzaRootedinPoverty.pdf>.

4. Performance Question • Does terrorism affect the economy? If so, how? • YES • human and labor resources (capital stock) decrease • environment of uncertainty negatively affects domestic and international consumption and investment • Governments redirect funds from productive sectors towards counter-terrorism security expenditures • Stunts growth in industry, more specifically tourism Abadie, Alberto. "Terrorism and the World Economy." (2007): 1-40. Web. 6 Oct 2009. <http://ksghome.harvard.edu/~aabadie/twe.pdf>.

5. Case Studies • Country unaffected by terrorism • Jordan • Countries affected by terrorism • Afghanistan • Lebanon http://www.libanmall.com/photos/lebanon_map2.jpg http://library.uwb.edu/pearl/afghanistan_map.gif http://www.merriam-webster.com/maps/images/maps/jordan_map.gif