The Adverse Effect of Transnational and Domestic Terrorism on Growth in Africa
This article investigates the adverse effects of domestic and transnational terrorism on income per capita growth for 51 African countries for 1970-2007, while accounting for cross-sectional (spatial) dependence and conflict (i.e. internal conflicts and external wars). The findings of the fixed-effects panel estimator suggest that transnational terrorism has a significant, but modest, marginal impact on income per capita growth. These results hold for two different terrorism event datasets. However, domestic terrorist events do not affect income per capita growth. Our findings differ from those in an earlier study on the impact of transnational terrorism on African growth, because we uncover a much more moderate effect. In our study, regional impacts and terrorism-conflict interactions effects are also distinguished. Moreover, our sample countries and period are more extensive. Our article contains a host of robustness checks involving macroeconomic and political variables that find virtually identical results. Alternative terrorist variables are also used, with little qualitative change in the findings. The absence of a domestic terrorism impact is surprising because there were many more domestic than transnational terrorist incidents in Africa. To promote growth, host and donor countries must direct scarce counter-terrorism resources to protect against transnational terrorism in particular. The modest impact of transnational terrorism on African growth means that developing countries’ economies have been more resilient to terrorism than has been generally thought.
When requesting a correction, please mention this item's handle: RePEc:sae:joupea:v:48:y:2011:i:3:p:355-371. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publishing)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.