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While many factors contribute to peace, economic and governmental factors are considered essential litmus tests for determining peace levels. This study aims to examine the impacts of World Governance Index (WGI) variables on the Global Peace Index (GPI) which ranges from 0 (very high) to 5 (very low).

The GPI serves as a key indicator of peace levels. Valid data from two databases covering 161 countries from 2008 to 2022 were collected and analyzed by using a logarithmic panel data regression model. This approach ensures robust results, particularly when endogenous and exogenous variables have different measurement units.

According to the Feasible Generalized Least Squares (FGLS) estimators, five WGI components exhibit inverse relationships with the GPI (increasing WGI components leads to a decline in GPI, indicating an enhancement in peace quality). The most significant factor influencing peace is “Political Stability and Absence of Violence/Terrorism”, while the effects of “Voice and Accountability” and “Control of Corruption” are also noted.

Extant studies have largely overlooked the interaction between governance and peace, often relying on regional data (with neighboring countries) or case studies on local solutions. This paper, based on data from 161 countries, evaluates governance quality and its dimensions in relation to peace conditions on a global scale, providing more generalizable results for policymakers and scholars.

The main objective of this research is to investigate if there is a long-term relationship between “terrorism” and sustainable “economic growth” in Big Ten Countries.

The data was tested via Panel ARDL Analysis. The growth rate (GR) is the dependent variable, and the “Global Terror Index (GTI)” is the independent variable as the terror indicator. The ratio of Foreign Direct Investment (FDI) to the Gross Domestic Product (GDP), and the ratio of External Balance (EB) to Gross Domestic Product (GDP) are included in the model as the control variables due to their effect on the growth rate. A Panel ARDL analysis is conducted to examine the existence of long-term co-integration between terror and the economy. The planning of the study, the formation of its theoretical and conceptual framework, and the literature research were carried out in 2 months, and the collection of data, the creation of the methodology and the analysis of the analyzes were carried out in 2 months, the interpretation of the findings and the development of policy recommendations were carried out within a period of 1 month. The entire study was completed in a total of 5 months.

Results showed that “Terror” has a negative impact on “Growth Rate” in the long term while “External Balance” and “Foreign Direct Investment” positively affect the Growth Rate. The coefficients for the short term are not statistically significant.

The sample is only limited to Big Ten including China, India, Indonesia, South Korea, Argentina, Brazil, Mexico, Turkey, Poland and South Africa. The period for annual data collection covers the years between 2002 and 2019 and due to the unavailability of data.

Considering the risks and the mutual negative effect that turns into a vicious circle between terrorism and the economy, it is necessary to eliminate the problems that cause terrorism in the mentioned countries, on the one hand, and to develop policies that will improve economic performance on the other.

Trustful law enforcement bodies have to be established and supported by all technological means to prevent terror. The conditions causing terror have to be investigated carefully and the problems causing terror or internal conflict have to be solved. International cooperation against terrorism has to be strengthened and partnerships, information, experience sharing have to be supported at the maximum levels.

It is certain that terror might have a negative influence on the performance of economies. But the limited number of studies within this vein and the small size of their sample groups mostly including single-country case studies require conducting a study by using a larger sample group of countries. Big Ten here represents at least half of the population of the world and different regions of the Globe.