Conditional Linkages Between Iron Ore Exports, Foreign Aid and Terrorism

Mineral Economics, 29(2), pp. 57–70 (December, 2016)

African Governance and Development Institute WP/16/035

26 Pages Posted: 21 Sep 2016 Last revised: 12 Jun 2017

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Jacinta Nwachukwu

University of Huddersfield - Business School

Date Written: March 1, 2016

Abstract

We employ interactive quantile regressions to assess conditional linkages between foreign aid, iron ore exports and terrorism from a panel of 78 developing countries for the period 1984-2008. The following main findings are established. First, it is primarily in the countries with the highest level of iron ore exports that terrorism affects exports. Second, bilateral aid has an impact on iron ore exports, while the evidence for such a relationship between multilateral aid and iron ore exports is limited. Third, there is limited support for the main hypothesis motivating this line of inquiry, notably that foreign aid can be used to mitigate a potentially negative effect of terrorism on resource exports. The results suggest that bilateral aid is more relevant at mitigating the negative effects of domestic and total terrorism on iron ore exports.

Keywords: Exports, Foreign Aid; Terrorism; Natural Resources; Development

JEL Classification: F40; F23; F35;Q34 ; O40

Suggested Citation

Asongu, Simplice and Nwachukwu, Jacinta C., Conditional Linkages Between Iron Ore Exports, Foreign Aid and Terrorism (March 1, 2016). Mineral Economics, 29(2), pp. 57–70 (December, 2016); African Governance and Development Institute WP/16/035. Available at SSRN: https://ssrn.com/abstract=2840840 or http://dx.doi.org/10.2139/ssrn.2840840

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Jacinta C. Nwachukwu

University of Huddersfield - Business School ( email )

Queensgate
Huddersfield HD1 3DH
United Kingdom

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