Any act against democracy will deter economy of the country. I definitely has a negative impact over the investing companies for the country. I need not quote examples for this!
yes terrorism effects the economy of any country. Our nation is in the number fourth position in terror attack. The first one is Iraq, then Pakistan, Afghanistan and India according to a study. If you want to prove that how terrorism effect economy then please go and check here Terrorism has long-lasting impact on Indian economy: Moody's - Times of India