On the day preceding terrorist attacks in Pakistan, the stock market in Karachi dips an average of 0.24% as investors react to rumors and, in some cases, advance warnings, say Faheem Aslam and Hyoung-Goo Kang of Hanyang University Business School in South Korea. The stock market tends to recover quickly after an attack, rising an average of 0.34% on the subsequent day; nevertheless, terrorism is having an increasingly devastating impact on Pakistan: The researchers studied the period from 2000 to 2011, during which there were 300 attacks that caused 10,743 deaths and 22,451 major injuries. The cost of terrorism over the past 10 years in Pakistan has been estimated at $68 billion, the researchers say.
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