The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism

Journal of African Development, 17(2017), pp. 77-91 (September, 2017).

34 Pages Posted: 31 Jul 2017 Last revised: 30 Sep 2017

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Vanessa S. Tchamyou

African Governance and Development Institute

Ndemaze Asongu

University of South Africa - Department of Communication Science

Nina Tchamyou

African Governance and Development Institute

Date Written: January 28, 2017

Abstract

This study investigates the role of inclusive human development and military expenditure in fighting terrorism in 53 African countries for the period 1998-2012. The empirical evidence is based on contemporary, non-contemporary and instrumental variable Fixed Effects regressions. Inclusive development is not a sufficient condition for the fight against terrorism whereas military expenditure can be effectively employed to mitigate the phenomenon. Significant negative effects are established only when endogeneity is accounted for by means of non-contemporary and instrumental-variables approaches. Hence, the policy effectiveness of employed tools is contingent on whether they are engaged proactively (i.e. non-contemporarily) or not. From the findings, the propensity of military expenditure to fight transnational terrorism is higher in: (i) middle income countries vis-à-vis their low income counterparts; (ii) oil-rich countries compared to oil-poor countries and (iii) Christian-dominated countries vis-à-vis their Islam-oriented counterparts. Furthermore military expenditure is also more effective at combating domestic and transnational terrorism in: (i) North African countries vis-à-vis their sub-Saharan Africa counterparts; (ii) landlocked countries compared to countries that are open to the sea and (iii) politically-stable countries vis-à-vis their politically-unstable counterparts. Contributions to the comparative economics are discussed. Practical and theoretical contributions are also provided.

Keywords: Terrorism; Inclusive Development; Military Expenditure; Africa

JEL Classification: C52; D74; F42; O16; O38

Suggested Citation

Asongu, Simplice and S. Tchamyou, Vanessa and Asongu, Ndemaze and Tchamyou, Nina, The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism (January 28, 2017). Journal of African Development, 17(2017), pp. 77-91 (September, 2017). . Available at SSRN: https://ssrn.com/abstract=3010126

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Vanessa S. Tchamyou

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Ndemaze Asongu

University of South Africa - Department of Communication Science ( email )

Pretoria
South Africa

Nina Tchamyou

African Governance and Development Institute ( email )

P.O. Box 18 SOA
Yaoundé, 1365
Cameroon

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