Impact of Terrorism, Foreign Direct Investment (FDI) and Energy Consumption on the Economic Performance: A Case of South Asian Economies

Foreign investment and finance are considered key to economic growth for many economies. In terrorism, these economies directly lose international capital. As a result, it causes an adverse impact on economic development in the countries. Human capital and natural capital factors will be fruitful when the environment is conducive and peaceful. Similarly, energy consumption and FDI would stimulate economic growth, subject to the absence of law-and order issues. This manuscript investigated the impact of terrorism, energy consumption and FDI on economic growth in South Asia over the period from 2002 to 2020. The model’s results display that terrorism and FDI have a negative impact on economic growth in South Asia. The result of energy consumption exhibits a positive and significant influence on economic growth in South Asia. Further, the results indicate that domestic investment and education in South Asia positively impact economic growth. Consequently, it is suggested that the South Asia countries should take appropriate actions to eradicate the problem of terrorism, ensure the availability of energy, and improve the labour force’s skills to achieve desirable economic growth.