The Role of Inclusive Development and Military Expenditure in Modulating the Effect of Terrorism on Governance

Forthcoming, Journal of Economic Studies

35 Pages Posted: 9 Aug 2018

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Jacinta Nwachukwu

Coventry University

Sara le Roux

Oxford Brookes University - Department of Economics

Date Written: January 2018

Abstract

Purpose - The study investigates the role of inclusive human development and military expenditure in modulating the effect of terrorism on governance.
Design/methodology/approach - It is based on 53 African countries for the period 1998-2012 and interactive Generalised Method of Moments is employed. Six governance indicators from the World Bank and two terrorism variables are used, namely: domestic and transnational terrorism dynamics.
Findings - The following main findings are established. There is a negative net effect on governance (regulation quality and corruption-control) when inclusive human development is used to reduce terrorism. There is a positive net impact on governance (“voice and accountability” and rule of law) when military expenditure is used to reduce domestic terrorism.
Originality/value - We have complemented the sparse literature on the use of policy variables to mitigate the effect of policy syndromes on macroeconomic outcomes.

Keywords: Terrorism; Inclusive Development; Governance; Africa

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

Suggested Citation

Asongu, Simplice and Nwachukwu, Jacinta and le Roux, Sara, The Role of Inclusive Development and Military Expenditure in Modulating the Effect of Terrorism on Governance (January 2018). Forthcoming, Journal of Economic Studies. Available at SSRN: https://ssrn.com/abstract=3219614

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

Sara Le Roux

Oxford Brookes University - Department of Economics ( email )

Oxford Brookes Business School
Headington Campus
Oxford, OX3 0BP
United Kingdom

HOME PAGE: http://saraleroux.weebly.com/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
15
Abstract Views
137
PlumX Metrics