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The role of inclusive development and military expenditure in modulating the effect of terrorism on governance

Author

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  • Simplice Asongu
  • Jacinta Nwachukwu
  • Sara le Roux

Abstract

Purpose - The purpose of this paper is to investigate 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 - The authors have complemented the sparse literature on the use of policy variables to mitigate the effect of policy syndromes on macroeconomic outcomes.

Suggested Citation

  • Simplice Asongu & Jacinta Nwachukwu & Sara le Roux, 2019. "The role of inclusive development and military expenditure in modulating the effect of terrorism on governance," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(3), pages 681-709, August.
    • Handle: RePEc:eme:jespps:jes-11-2017-0343
    DOI: 10.1108/JES-11-2017-0343
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    More about this item

    Keywords

    Terrorism; Governance; Africa; Inclusive development; C52; D74; F42; O38; P37;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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