Logo
Munich Personal RePEc Archive

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

Asongu, Simplice and Nwachukwu, Jacinta and le Roux, Sara (2018): The role of inclusive development and military expenditure in modulating the effect of terrorism on governance. Forthcoming in: Journal of Economic Studies

[thumbnail of MPRA_paper_89134.pdf]
Preview
PDF
MPRA_paper_89134.pdf

Download (336kB) | Preview

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.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.