Mitigating capital flight through military expenditure: Insight from 37 African countries

Asongu, Simplice A.; Amankwah‐Amoah, Joseph

doi:10.1016/j.ribaf.2017.07.130

Cited by 32 publications

(8 citation statements)

References 59 publications

(32 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The interaction term itself is significant. These results are quite consistent with the past studies (Asongu, 2016 and2017). Model 5 represents the result after introducing the interaction term of military expenditure with transnational terrorism.…”

Section: Discussionsupporting

confidence: 91%

“…The fostering consequences of terrorism have an importance for both the academics and policymakers. (Efobi et al, 2016, Asongu et al 2017). Terrorism creates dissatisfaction in the community and reduce happiness and coordination in the community (Wouter and Piotr, 2018) The consequences of 9/11 terrorist attacks on stock markets, Madrid 2004 andin London 2005 have shown that terrorism is a new facet of risk that investors and financial institutions may be fronting (Marc Chesney et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Impact of Domestic and Transnational Terrorism on Capital Flight: Moderating role of Military Expenditure and Institutional Quality. Evidence from Asian & MENA Countries

Abbas

2018

NRJSS

View full text Add to dashboard Cite

This research is fundamentally concerned with the issue of terrorism and its impact on capital flight from Asian countries and MENA countries. Terrorism remains an active research topic with respect to economic consequences; such that increase in terrorism causes political instability, which gives a poor economic outlook, hence investors tend to shift their money out of the victimized country. Furthermore, this study has explored the distinct impacts of domestic and transnational terrorism simultaneously for capital flight. Moreover, this study has discovered the role of military expenditure as a policy variable to combat terrorism. Besides this, the study also highlights the prominence of institutional quality because the effectiveness of government institutions plays a significant role to ameliorate the uncertainty arising due to terrorism and hence cause a reduction in capital flight. Panel data comprising of 9 Asian and 5 Mena countries from 2006 to have been used in this study. Generalized Method of Moment for empirical testing has been applied to address the issue of capital flight trap and endogeneity among variables. Findings reveal that both dimensions of terrorism have a significant impact on capital flight.

show abstract

Section: Discussionsupporting

confidence: 91%

Section: Introductionmentioning

confidence: 99%

Impact of Domestic and Transnational Terrorism on Capital Flight: Moderating role of Military Expenditure and Institutional Quality. Evidence from Asian & MENA Countries

Abbas

2018

NRJSS

View full text Add to dashboard Cite

show abstract

“…More insights into this position is available in Lai (2007) and Piazza (2008a). The stance has also been confirmed in a broad stream of terrorism literature (Schmid, 1992;Eubank & Weinberg, 1994;Drakos & Gofas, 2006;Piazza, 2007;Asongu & Amankwah-Amoah, 2018).…”

Section: Theoretical Underpinningsmentioning

confidence: 74%

The Comparative African Economics of Governance in Fighting Terrorism

et al. 2018

View full text Add to dashboard Cite

Disclaimer: AFEA Working Papers describe research in progress by the author(s) that has been peer-reviewed and forthcoming in scientific outlets. There is a tacit acknowledgement of anonymous referees for constructive suggestions and critiques that have helped improve the content and rigour of the study. Each research stands on its merit and the views expressed in AFEA Working Papers are those of the author(s) and do not necessarily represent the views of the AFEA, its Executive Board, or AFEA management. AbstractThis study assesses the comparative economics of governance in fighting terrorism in 53 African countries for period 1996-2012. Four terrorism variables are used, namely: domestic, transnational, unclear and total terrorism dynamics. Nine bundled and unbundled governance variables are employed, notably: political stability/no violence, voice & accountability, political governance, government effectiveness, regulation quality, economic governance, corruption-control, the rule of law and institutional governance. The empirical evidence is based on Fixed Effects regressions. In the analytical procedure, we first bundle governance indicators by means of principal component analysis before engaging the empirical exercise with the full sample. In the final step, specifications are based on a decomposed full sample in order to articulate the fundamental characteristics for comparative purposes. The following broad findings are established. First, good governance is an appealing tool in fighting terrorism. Second, the relevance of the good governance dynamics is as follows in order of increasing relevance: economic governance, institutional governance and political governance. The findings are presented in increasing order of magnitude to emphasise fundamental features in which governance dynamics have the highest effect in mitigating terrorism. JEL Classification: C52; D74; F42; O38 ; P37

show abstract

“…The adopted elements in the conditioning information set are: internal conflicts, political globalisation, inflation, infrastructure, exchange rate and trade openness. The choice of these indicators in the conditioning information set is motivated by contemporary terrorism literature (Bandyopadhyay et al 2014, Efobi and Asongu 2016, Asongu and Biekpe 2018, Asongu and Amankwah-Amoah 2018. It is expected that trade openness, better infrastructure and improvements in exchange rate will have a positive incidence on the exports of resources (Akpan 2014, Asongu 2015a.…”

Section: Datamentioning

confidence: 99%

Natural Resource Exports, Foreign Aid and Terrorism

Asongu

2019

SSRN Journal

View full text Add to dashboard Cite

Linkages between foreign aid, terrorism and natural resource (fuel and iron ore) exports are investigated in this study. The focus is on 78 developing countries with data for the period 1984 to 2008. The generalised method of moment is employed as empirical strategy. Three main foreign aid variables are used for the analysis, namely: bilateral aid, multilateral aid and total aid. The corresponding terrorism variables employed are: domestic terrorism, transnational terrorism, unclear terrorism and total terrorism. The following findings are established. First, the criteria informing the validity of specifications corresponding to iron ore exports do not hold. Second, there is evidence of convergence in fuel exports. Third, whereas the unconditional impacts of aid dynamics are not significant, the unconditional impacts of terrorism dynamics are consistently positive on fuel exports. Fourth, the interaction between terrorism and aid dynamics consistently display negative signs, with corresponding modifying aid thresholds within respective ranges. Unexpected signs are elicited and policy implications discussed. Given the unexpected results, an extended analysis is performed in which net effects are computed. These net effects are constitutive of the unconditional effect from terrorism and the conditional impacts from the interaction between foreign aid and terrorism dynamics. Based on the extended analysis, bilateral aid and total aid modulate terrorism dynamics to induce net positive effects on fuel exports while multilateral aid moderates terrorism dynamics to engender negative net effects on fuel exports. The research improves extant knowledge on nexuses between resources, terrorism and foreign aid. JEL Classification: F40; F23; F35; Q34; O40

show abstract

Mitigating capital flight through military expenditure: Insight from 37 African countries

Cited by 32 publications

References 59 publications

Impact of Domestic and Transnational Terrorism on Capital Flight: Moderating role of Military Expenditure and Institutional Quality. Evidence from Asian & MENA Countries

Impact of Domestic and Transnational Terrorism on Capital Flight: Moderating role of Military Expenditure and Institutional Quality. Evidence from Asian & MENA Countries

The Comparative African Economics of Governance in Fighting Terrorism

Natural Resource Exports, Foreign Aid and Terrorism

Contact Info

Product

Resources

About