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

Author

Listed:
  • Simplice Asongu

    () (Yaoundé/Cameroun)

  • Jacinta C. Nwachukwu

    () (University of Central Lancashire, UK)

  • Sara le Roux

    () (Oxford Brookes, UK)

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.

Suggested Citation

  • Simplice Asongu & Jacinta C. Nwachukwu & Sara le Roux, 2018. "The role of inclusive development and military expenditure in modulating the effect of terrorism on governance," Working Papers of the African Governance and Development Institute. 18/026, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:18/026
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    Keywords

    Terrorism; Inclusive development; Governance; Africa;

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P37 - Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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