The Impact of Terrorism on Governance in African Countries

World Development, 99(November), pp. 253-270.

32 Pages Posted: 3 Jun 2017 Last revised: 20 Aug 2017

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Jacinta Nwachukwu

Coventry University

Date Written: January 2, 2017

Abstract

This study investigates how terrorism affects governance in 53 African countries for the period 1998-2012. Four terrorism indicators are used namely: domestic, transnational, unclear and total terrorism. Ten bundled and unbundled governance indicators are also employed namely: political governance (consisting of political stability and voice and accountability), economic governance (encompassing government effectiveness and regulation quality); institutional governance (entailing corruption-control and the rule of law) and general governance. The governance indicators are bundled by means of principal component analysis. The empirical evidence is based on Generalized Method of Moments. Three key findings are established. First, all selected terrorism dynamics negatively affect political governance and its constituents. Second, evidence of a negative relationship is sparingly apparent in economic governance and its components. Third, no proof was confirmed in relation to the impact of terrorism and institutional governance with its elements. Fourth, compared with domestic terrorism, transnational terrorism more negatively and significantly affects political, economic and general governances. Policy implications are discussed.

Keywords: Terrorism; Governance; Africa

JEL Classification: C52; D74; F42; O38 ; P37

Suggested Citation

Asongu, Simplice and Nwachukwu, Jacinta, The Impact of Terrorism on Governance in African Countries (January 2, 2017). World Development, 99(November), pp. 253-270.. Available at SSRN: https://ssrn.com/abstract=2979289 or http://dx.doi.org/10.2139/ssrn.2979289

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Jacinta Nwachukwu

Coventry University ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom

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