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Terrorism and Poverty: Double Trouble for Macroeconomic Performance in African Countries

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  • Ilyas, Saddam
  • Mehmood, Bilal
  • Aslam, Raees

Abstract

This article investigates poverty and terrorism as allies in hindering economic growth in African countries. This study uses data for 22 African countries from 1970 to 2013 i.e. 44 years. Data for terrorism, poverty and national income is taken from GTD and WDI. Panel cointegration techniques of dynamic fixed effect, mean group and pooled mean group are applied to quantify the long-run impact of terrorism and poverty on macroeconomic performance. Moreover, robustness is checked by using various estimators of slope parameters including POLS, FMOLS and DOLS. Empirical findings reveal that both poverty and terrorism have a long-run negative impact the macroeconomic performance. Recommendations for the double trouble are made at the end.

Suggested Citation

  • Ilyas, Saddam & Mehmood, Bilal & Aslam, Raees, 2017. "Terrorism and Poverty: Double Trouble for Macroeconomic Performance in African Countries," African Journal of Economic Review, African Journal of Economic Review, vol. 5(1), January.
    • Handle: RePEc:ags:afjecr:264468
    DOI: 10.22004/ag.econ.264468
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    Cited by:

    1. Shuo She & Qiao Wang & Dana Weimann-Saks, 2020. "Correlation factors influencing terrorist attacks: political, social or economic? A study of terrorist events in 49 “Belt and Road” countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(1), pages 125-146, February.
    2. Kohnert, Dirk, 2022. "L'impact du terrorisme islamiste sur l'économie informelle africaine: le Kenya, comparé au Ghana et au Sénégal [The impact of Islamist terrorism on Africa's informal economy: Kenya, compared with G," MPRA Paper 113605, University Library of Munich, Germany.
    3. Kohnert, Dirk, 2022. "The impact of Islamist terrorism on Africa's informal economy: Kenya, compared with Ghana and Senegal," MPRA Paper 113603, University Library of Munich, Germany.

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    Keywords

    Food Security and Poverty;

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