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Analyzing the impacts of terrorism on innovation activity: A cross country empirical study

Author

Listed:
  • Bisharat Hussain Chang

    (Department of Business Administration, Sukkur IBA University, Sukkur, Pakistan)

  • Khalil Ahmed Channa

    (Department of Business Administration, Sukkur IBA University, Sukkur, Pakistan)

  • Emmanuel Uche

    (Department of Economics, Abia State University, Uturu, Nigeria. School of Economics, College of Business and Economics, University of Johannesburg, South Africa.)

  • Osamah Ibrahim Khalaf

    (Department of Solar, Al-Nahrain Research Center for Renewable Energy, Al-Nahrain University, Jadriya, Baghdad, Iraq)

  • Osamah Waheed Ali

    (Department of Management Sciences SZABIST Larkana, Larkana, Pakistan)

Abstract

[Purpose] Many studies have analyzed the impact of terrorism on economic growth, but the terrorism-innovation nexus is very rare in academic literature. Hence, this study aims to theoretically and empirically examine the effect of terrorism on innovation activity. [Design/methodology/approach] We employ OLS, system GMM, and quantile regression on a panel dataset of 31 economies for 1990-2022. [Findings] The study’s findings indicate that terrorism negatively and significantly impacts innovation activity. Various robustness checks further support the results of this study. Moreover, the study findings also identify possible channels, such as domestic investment, foreign direct investment, and trade openness, through which terrorism affects innovation activity. [Originality/Value] The outcomes of this study will not only provide policy recommendations for sustainable national innovation and offer a better understanding of the subject matter.

Suggested Citation

  • Bisharat Hussain Chang & Khalil Ahmed Channa & Emmanuel Uche & Osamah Ibrahim Khalaf & Osamah Waheed Ali, 2022. "Analyzing the impacts of terrorism on innovation activity: A cross country empirical study," Advances in Decision Sciences, Asia University, Taiwan, vol. 26(Special), pages 124-161, December.
    • Handle: RePEc:aag:wpaper:v:26:y:2022:i:special:p:124-161
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    More about this item

    Keywords

    Terrorism; innovation activity; Panel data; OLS; System GMM; Quantile regression;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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