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Conditional linkages between iron ore exports, foreign aid and terrorism

Author

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  • Simplice A. Asongu

    () (African Governance and Development Institute)

  • Jacinta C. Nwachukwu

    () (Coventry University)

Abstract

We employ interactive quantile regressions to assess conditional linkages between foreign aid, iron ore exports and terrorism from a panel of 78 developing countries for the period of 1984–2008. The following main findings are established. First, it is primarily in the countries with the highest level of iron ore exports that terrorism affects exports. Second, bilateral aid has an impact on iron ore exports, while the evidence for such a relationship between multilateral aid and iron ore exports is limited. Third, there is limited support for the main hypothesis motivating this line of inquiry, notably that foreign aid can be used to mitigate a potentially negative effect of terrorism on resource exports. The results suggest that bilateral aid is more relevant at mitigating the negative effects of domestic and total terrorism on iron ore exports.

Suggested Citation

  • Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "Conditional linkages between iron ore exports, foreign aid and terrorism," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 29(2), pages 57-70, December.
  • Handle: RePEc:spr:minecn:v:29:y:2016:i:2:d:10.1007_s13563-016-0088-1
    DOI: 10.1007/s13563-016-0088-1
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    Cited by:

    1. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu, 2019. "Ethnic Diversity and Inequality in Sub-Saharan Africa: Do Institutions Reduce the Noise?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 1033-1062, October.
    2. Simplice Asongu & Ivo J. Leke, 2019. "Can Foreign Aid Dampen the Threat of Terrorism to International Trade? Evidence from 78 Developing Countries," Arthaniti: Journal of Economic Theory and Practice, , vol. 18(1), pages 32-55, June.
    3. Simplice A. Asongu & Vanessa S. Tchamyou & Ndemaze Asongu & Nina P. Tchamyou, 2019. "Fighting terrorism in Africa when existing terrorism levels matter," Working Papers 19/084, European Xtramile Centre of African Studies (EXCAS).
    4. Simplice A. ASONGU & Jacinta NWACHUKWU & Nicholas BIEKPE, 2019. "Foreign Aid, Terrorism And Growth: Conditional Evidence From Quantile Regression," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(3), pages 457-486, September.
    5. Simplice A. Asongu & Uchenna R. Efobi & Ibukun Beecroft, 2017. "Aid in Modulating the Impact of Terrorism on FDI: No Positive Thresholds, No Policy," Research Africa Network Working Papers 17/061, Research Africa Network (RAN).
    6. Simplice Asongu & Vanessa Tchamyou & Ndemaze Asongu & Nina Tchamyou, 2017. "The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism," Journal of African Development, African Finance and Economic Association (AFEA), vol. 19(2), pages 77-91.
    7. Simplice A. Asongu & Vanessa S. Tchamyou & Ndemaze Asongu & Nina Tchamyou, 2018. "The Comparative African Economics of Governance in Fighting Terrorism," Research Africa Network Working Papers 18/055, Research Africa Network (RAN).
    8. Asongu, Simplice A. & Biekpe, Nicholas, 2018. "Globalization and terror in Africa," International Economics, Elsevier, vol. 156(C), pages 86-97.
    9. Simplice Asongu & Oasis Kodila-Tedika, 2017. "Trade, aid and terror," International Journal of Development Issues, Emerald Group Publishing, vol. 16(1), pages 2-24, April.

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    More about this item

    Keywords

    Exports; Foreign aid; Terrorism; Natural resources; Development;
    All these keywords.

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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