An Analysis of Regional Terrorism Formation and its Impact on the Business Environment in Iran

In recent decades, terrorism increasingly has made business environment more insecure, and thus policy makers faced with two key questions: First, what are the economic forces for the emergence of terrorism? Second, how terrorism does influence business environment? We focus on MENA countries. According to literature, global trade and foreign investments need to raise and maintain the economic security. In some countries, terrorism can increase political risks and lead to isolation of these countries in the world. Present study tries to explore about terrorism originated in economic causes and its relationship with business environment in MENA countries. This research is an applied research according to its nature and its method of data collection is a descriptive study. In First section, we assess terrorism around the world and MENA. In second section, we study the effects of terrorism on business environment. Our results suggest that regional terrorism in the recent decade has had significant negative impact on indicators such as country risk level, investment and foreign trade in MENA region.