This paper empirically investigates the impacts of terrorist attacks on economic and fiscal variables by utilizing ARIMA model which includes dummy variables. Analyses are carried out with quarterly series related to Turkish economy and the data set covers 1989:12015:4 periods. In empirical analyses, we consider the terrorist attacks, throughout the 1980-2014 periods of Turkey, in which the casualties are 101+, and we investigate the impacts of these terrorist attacks on a variety of economic variables namely the ratio of budget revenues to GDP, the ratio of budget balance to GDP, the ratio of budget expenditures to GDP, domestic debt stock, GDP, total export, total import, consumer price index, real effective exchange rate and output gap. The result of the study indicates that the budget revenues and import variables are most affected by the terrorist attacks
Key words: Terrorist Attacks, ARIMA Model, Turkish Economy. JEL Classification Codes: E60, H20, H56 Article Language: EnglishTurkish
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