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Effects of globalization on peace and stability: Implications for governance and the knowledge economy of African countries

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  • Amavilah, Voxi
  • Asongu, Simplice
  • Andrés, Antonio

Abstract

We argue that there exists an indirect link between globalization and the knowledge economy of African countries in which globalization influences ‘peace and stability’ and peace and stability affects governance, and through governance the knowledge economy. We model the link as a three-stage process in four testable hypotheses, which permits an empirical analysis without sacrificing economic relevance for statistical significance. The results indicate that the impacts on governance of peace and stability from globalization defined as trade are stronger than those of peace and stability resulting from globalization taken to be foreign direct investment. We conclude that foreign direct investment is not a powerful mechanism for stimulating and sustaining the African knowledge. However, since the effects of globalization on peace and stability can influence governance both positively and negatively, we also conclude that the prospect for the knowledge economy in African countries may be realistic and attainable, as long as these countries continue to engage in the kind of globalization that enhances peace and stability.

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  • Amavilah, Voxi & Asongu, Simplice & Andrés, Antonio, 2017. "Effects of globalization on peace and stability: Implications for governance and the knowledge economy of African countries," MPRA Paper 80651, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:80651
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    More about this item

    Keywords

    Globalization; peace and stability; Governance; knowledge economy; African countries;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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