Military Expenditure, Terrorism and Capital Flight: Insights from Africa

Asongu, Simplice A.; Amankwah‐Amoah, Joseph

doi:10.2139/ssrn.2800655

Cited by 10 publications

(8 citation statements)

References 71 publications

(36 reference statements)

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“…Hence, this discourse is broadly in line with the previous narrative on economic growth. However, it is very probable that financial and trade globalisations are linked to capital flight because of, inter alia, opportunities for accounting practises like transfer mispricing (see Asongu & Amankwah-Amoah, 2016;Ndikumana & Sarr, 2016).…”

Section: Datamentioning

confidence: 99%

Fighting Capital Flight in Africa: Evidence from Bundling and Unbundling Governance

Asongu

Nwachukwu

2016

J Ind Compet Trade

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Section: Datamentioning

confidence: 99%

Fighting Capital Flight in Africa: Evidence from Bundling and Unbundling Governance

Asongu

Nwachukwu

2016

J Ind Compet Trade

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“…The effect of military expenditures on terrorist attacks is consistent and negative in the pre-9/11 period, signifying that higher military expense helps to reduce terrorist activities because they strengthen national security and, ultimately, counterterrorist attacks. Supporting this outcome, Asongu and Amoah (2016) reported that a rise in military expenses is expected to decrease terrorist attacks. However, this impact is positive in the post-9/11 at a 5% significance level.…”

Section: Ta B L E 5 Autoregressive Distributed Lag Bound Testmentioning

confidence: 92%

Impacts of USAID and development assistance toward counterterrorism efforts: Empirical evidence in context of Pakistan

Shahzad

Farooq

Qin

2019

Asian Soc Wrk & Pol Rev

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This article studies whether the pursuit of foreign aid for counterterrorism purposes militarizes or mitigates terrorism. It focuses on the USAID and official development assistance (ODA) flows to Pakistan, which recently has experienced an increase due to the presence of deadliest terrorist organizations. By using the time series data from 1985 to 2016, the paper investigated the foreign aid and terrorism nexus for pre‐9/11 and post‐9/11 periods. The empirical estimations of autoregressive distributed lag bound testing approach reported that an increase in military expenditures fuels terrorism in post‐9/11 period and the ODA helps to control terrorism from the country. On the contrary, USAID reported insignificant response toward terrorist attacks in pre‐ and post‐9/11 periods, suggesting that the foreign aid from the United States has no significant impact on counterterrorism policies for Pakistan. The outcomes of the current study can be utilized in policymaking of counterterrorism and to explore the nexus between foreign aid, terrorism, and military expenditures. The paper concludes that the concerns about the use of foreign aid as counterterrorism tool are warranted, but that actual manifestations are nuanced.

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“…Expenditures on military would help countries to get rid of the terrorism. There is sound evidence in the literature about the relationship between military expenditures and terrorism (Asongu and Amankwah‐Amoah, ; Tahir, ). Similarly, the lack of education could play a significant role in accelerating the terrorist problem.…”

Section: Modeling and Methodologymentioning

confidence: 99%

Terrorism and its Determinants in the Sub‐Saharan Africa Region: Some New Insights

Tahir¹,

Afzal²,

Afridi³

et al. 2019

African Development Review

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Terrorism is undesirable as it adversely affects the economic development of countries. This study explores the determinants of terrorism in 29 countries of sub-Saharan Africa (SSA). The data is extracted from reliable sources spanning over 2005 to 2016. Econometric techniques relevant for panel data that control for unobserved heterogeneity (fixed effects) and endogeneity (generalized method of moment) are employed to estimate the specified models. The results indicated that low growth in per capita incomes along with political instability are the main driving forces responsible for terrorism. Similarly, military expenditures are influencing terrorism positively whereas corruption has impacted terrorism negatively in the SSA region. Further, the growth of both physical as well as human capital reduces terrorism. The paper suggests that the region should take appropriate steps for increasing income of the population, education and capital stock, along with ensuring political stability to eradicate terrorism from the region.

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Military Expenditure, Terrorism and Capital Flight: Insights from Africa

Abstract: In spite of the growing consensus of the need to utilise military expenditure to help combat terrorism, our understanding of the threshold at which military expenditure reduces the effect of terrorism stemming from capital flight remains largely underexplored. We employed a

Cited by 10 publications

References 71 publications

Fighting Capital Flight in Africa: Evidence from Bundling and Unbundling Governance

Fighting Capital Flight in Africa: Evidence from Bundling and Unbundling Governance

Impacts of USAID and development assistance toward counterterrorism efforts: Empirical evidence in context of Pakistan

Terrorism and its Determinants in the Sub‐Saharan Africa Region: Some New Insights

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