IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/83069.html
   My bibliography  Save this paper

The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism

Author

Listed:
  • Asongu, Simplice
  • Tchamyou, Vanessa
  • Asongu, Ndemaze
  • Tchamyou, Nina

Abstract

This study investigates the role of inclusive human development and military expenditure in fighting terrorism in 53 African countries for the period 1998-2012. The empirical evidence is based on contemporary, non-contemporary and instrumental variable Fixed Effects regressions. Inclusive development is not a sufficient condition for the fight against terrorism whereas military expenditure can be effectively employed to mitigate the phenomenon. Significant negative effects are established only when endogeneity is accounted for by means of non-contemporary and instrumental-variables approaches. Hence, the policy effectiveness of employed tools is contingent on whether they are engaged proactively (i.e. non-contemporarily) or not. From the findings, the propensity of military expenditure to fight transnational terrorism is higher in: (i) middle income countries vis-à-vis their low income counterparts; (ii) oil-rich countries compared to oil-poor countries and (iii) Christian-dominated countries vis-à-vis their Islam-oriented counterparts. Furthermore military expenditure is also more effective at combating domestic and transnational terrorism in: (i) North African countries vis-à-vis their sub-Saharan Africa counterparts; (ii) landlocked countries compared to countries that are open to the sea and (iii) politically-stable countries vis-à-vis their politically-unstable counterparts. Contributions to the comparative economics are discussed. Practical and theoretical contributions are also provided.

Suggested Citation

  • Asongu, Simplice & Tchamyou, Vanessa & Asongu, Ndemaze & Tchamyou, Nina, 2017. "The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism," MPRA Paper 83069, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:83069
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/83069/1/MPRA_paper_83069.pdf
    File Function: original version
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Augustin Kwasi Fosu, 2010. "Inequality, Income, and Poverty: Comparative Global Evidence," Social Science Quarterly, Southwestern Social Science Association, vol. 91(5), pages 1432-1446, December.
    2. Thomas Gries & Tim Krieger & Daniel Meierrieks, 2011. "Causal Linkages Between Domestic Terrorism and Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(5), pages 493-508, June.
    3. Augustin Kwasi Fosu, 2010. "Inequality, Income, and Poverty: Comparative Global Evidence," Social Science Quarterly, Southwestern Social Science Association, vol. 91(s1), pages 1432-1446.
    4. repec:spr:soinre:v:134:y:2017:i:2:d:10.1007_s11205-016-1439-6 is not listed on IDEAS
    5. Simplice Asongu & Joseph Amankwah-Amoah, 2016. "Military expenditure, terrorism and capital flight: Insights from Africa," Working Papers of the African Governance and Development Institute. 16/018, African Governance and Development Institute..
    6. Simplice Asongu & Uchenna Efobi & Ibukun Beecroft, 2015. "Inclusive Human Development in Pre-crisis Times of Globalization-driven Debts," African Development Review, African Development Bank, vol. 27(4), pages 428-442, December.
    7. Uchenna Efobi & Simplice Asongu, 2016. "Terrorism and capital flight from Africa," International Economics, CEPII research center, issue 148, pages 81-94.
    8. 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.
    9. Augustin Kwasi Fosu, 2008. "Inequality and the growth-poverty nexus: specification empirics using African data," Applied Economics Letters, Taylor & Francis Journals, vol. 15(7), pages 563-566.
    10. Blomberg, S. Brock & Hess, Gregory D. & Weerapana, Akila, 2004. "Economic conditions and terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 463-478, June.
    11. Narayan, Paresh Kumar & Mishra, Sagarika & Narayan, Seema, 2011. "Do market capitalization and stocks traded converge? New global evidence," Journal of Banking & Finance, Elsevier, vol. 35(10), pages 2771-2781, October.
    12. Quan Li & Drew Schaub, 2004. "Economic Globalization and Transnational Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(2), pages 230-258, April.
    13. Alberto Abadie, 2006. "Poverty, Political Freedom, and the Roots of Terrorism," American Economic Review, American Economic Association, vol. 96(2), pages 50-56, May.
    14. James A. Piazza, 2013. "Symposium - The Cost of Living and Terror: Does Consumer Price Volatility Fuel Terrorism?," Southern Economic Journal, Southern Economic Association, vol. 79(4), pages 812-831, April.
    15. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    16. Franklin Obeng-Odoom, 2015. "Africa: On the Rise, but to Where?," Forum for Social Economics, Taylor & Francis Journals, vol. 44(3), pages 234-250, December.
    17. Simplice A. Asongu & Jacinta C. Nwachukwu, 2018. "Increasing Foreign Aid for Inclusive Human Development in Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 443-466, July.
    18. 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.
    19. Freytag, Andreas & Krüger, Jens J. & Meierrieks, Daniel & Schneider, Friedrich, 2011. "The origins of terrorism: Cross-country estimates of socio-economic determinants of terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 5-16.
    20. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "Revolution empirics: predicting the Arab Spring," Empirical Economics, Springer, vol. 51(2), pages 439-482, September.
    21. Augustin Kwasi Fosu, 2015. "Growth, Inequality and Poverty in Sub-Saharan Africa: Recent Progress in a Global Context," Oxford Development Studies, Taylor & Francis Journals, vol. 43(1), pages 44-59, March.
    22. Mete Feridun & Muhammad Shahbaz, 2010. "Fighting Terrorism: Are Military Measures Effective? Empirical Evidence From Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(2), pages 193-205.
    23. Seung-Whan Choi & Idean Salehyan, 2013. "No Good Deed Goes Unpunished: Refugees, Humanitarian Aid, and Terrorism," Conflict Management and Peace Science, Peace Science Society (International), vol. 30(1), pages 53-75, February.
    24. Asongu, Simplice A. & Le Roux, Sara, 2017. "Enhancing ICT for inclusive human development in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 44-54.
    25. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2014. "Africa is on time," Journal of Economic Growth, Springer, vol. 19(3), pages 311-338, September.
    26. Augustin Kwasi Fosu, 2009. "Inequality and the Impact of Growth on Poverty: Comparative Evidence for Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 726-745.
    27. Jean-François Arvis & Gaël Raballand & Jean-François Marteau, 2010. "The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability," World Bank Publications, The World Bank, number 2489, июль.
    28. Odhiambo, Nicholas M., 2009. "Finance-growth-poverty nexus in South Africa: A dynamic causality linkage," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 320-325, March.
    29. Khusrav Gaibulloev & Todd Sandler & Charlinda Santifort, 2012. "Assessing the Evolving Threat of Terrorism," Global Policy, London School of Economics and Political Science, vol. 3(2), pages 135-144, May.
    30. Fosu, Augustin Kwasi, 2010. "Does inequality constrain poverty reduction programs? Evidence from Africa," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 818-827, November.
    31. Baten, Joerg & Mumme, Christina, 2013. "Does inequality lead to civil wars? A global long-term study using anthropometric indicators (1816–1999)," European Journal of Political Economy, Elsevier, vol. 32(C), pages 56-79.
    32. Burcu Savun & Brian J. Phillips, 2009. "Democracy, Foreign Policy, and Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 53(6), pages 878-904, December.
    33. Subhayu Bandyopadhyay & Todd Sandler & Javed Younas, 2014. "Foreign direct investment, aid, and terrorism," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 25-50, January.
    34. Walter Enders & Todd Sandler & Khusrav Gaibulloev, 2011. "Domestic Versus Transnational Terrorism: Data, Decomposition, and Dynamics," Journal of Peace Research, Peace Research Institute Oslo, vol. 48(3), pages 319-337, May.
    35. repec:spr:soinre:v:134:y:2017:i:3:d:10.1007_s11205-016-1467-2 is not listed on IDEAS
    36. Seden Akcinaroglu & Elizabeth Radziszewski, 2013. "Private Military Companies, Opportunities, and Termination of Civil Wars in Africa," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(5), pages 795-821, October.
    37. Mauro Costantini & Claudio Lupi, 2005. "Stochastic convergence among European economies," Economics Bulletin, AccessEcon, vol. 3(38), pages 1-17.
    38. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "The Comparative Inclusive Human Development of Globalisation in Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 1027-1050, December.
    39. James A Piazza, 2011. "Poverty, Minority Economic Discrimination, and Domestic Terrorism," Journal of Peace Research, Peace Research Institute Oslo, vol. 48(3), pages 339-353, May.
    40. Krieger, Tim & Meierreiks, Daniel, 2015. "Does income inequality lead to terrorism? Evidence from the post-9/11 era," Discussion Paper Series 2015-04, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    41. Quan Li, 2005. "Does Democracy Promote or Reduce Transnational Terrorist Incidents?," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(2), pages 278-297, April.
    42. Khusrav Gaibulloev & Todd Sandler, 2009. "The Impact Of Terrorism And Conflicts On Growth In Asia," Economics and Politics, Wiley Blackwell, vol. 21(3), pages 359-383, November.
    43. Nicholas M. Odhiambo, 2011. "Growth, Employment and Poverty in South Africa: In Search of a Trickle-Down Effect," Journal of Income Distribution, Ad libros publications inc., vol. 20(1), pages 49-62, March.
    44. Atin Basuchoudhary & William Shughart, 2010. "On Ethnic Conflict And The Origins Of Transnational Terrorism," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(1), pages 65-87.
    45. Frannie A. Leautier, 2012. "What Role for Africa After 50 Years of Independence: Provider of Natural Resources or a New Global Leader?," Journal of African Development, African Finance and Economic Association (AFEA), vol. 14(1), pages 127-151.
    46. repec:cup:apsrev:v:105:y:2011:i:03:p:478-495_00 is not listed on IDEAS
    47. Barros, Carlos Pestana & Faria, Joao Ricardo & Gil-Alana, Luis A., 2008. "Terrorism against American citizens in Africa: Related to poverty," Journal of Policy Modeling, Elsevier, vol. 30(1), pages 55-69.
    48. Caruso, Raul & Schneider, Friedrich, 2011. "The socio-economic determinants of terrorism and political violence in Western Europe (1994–2007)," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 37-49.
    49. Gudrun Østby, 2008. "Polarization, Horizontal Inequalities and Violent Civil Conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 45(2), pages 143-162, March.
    50. Montfort Mlachila & René Tapsoba & Sampawende J. A. Tapsoba, 2017. "A Quality of Growth Index for Developing Countries: A Proposal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 675-710, November.
    51. Danielle Resnick, 2015. "The Political Economy of Africa's Emergent Middle Class: Retrospect and Prospects," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 573-587, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simplice A. Asongu & Jacinta C. Nwachukwu & Sara le Roux, 2018. "The role of inclusive development and military expenditure in modulating the effect of terrorism on governance," AFEA Working Papers 18/022, African Finance and Economic Association (AFEA).
    2. Asongu, Simplice & Acha-Anyi, Paul, 2017. "The Murder Epidemic: A Global Comparative Study," MPRA Paper 85486, University Library of Munich, Germany, revised Jan 2018.
    3. Asongu, Simplice A. & Odhiambo, Nicholas M., 2019. "Governance and social media in African countries: An empirical investigation," Telecommunications Policy, Elsevier, vol. 43(5), pages 411-425.
    4. Simplice A. Asongu & Oasis Kodila-Tedika, 2019. "Intelligence and Slave Exports from Africa," Working Papers of the African Governance and Development Institute. 19/005, African Governance and Development Institute..
    5. Simplice Asongu & Ivo Leke, 2018. "Can foreign aid dampen the threat of terrorism to international trade? Evidence from 78 developing countries," Working Papers of the African Governance and Development Institute. 18/032, African Governance and Development Institute..
    6. Asongu, Simplice & Nnanna, Joseph, 2019. "Dynamic Determinants of Access to Weapons: Global Evidence," MPRA Paper 93532, University Library of Munich, Germany.
    7. 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).
    8. 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).
    9. Simplice A. Asongu, 2019. "Natural Resource Exports, Foreign Aid and Terrorism," Working Papers 19/023, European Xtramile Centre of African Studies (EXCAS).
    10. repec:cii:cepiie:2018-q4-156-7 is not listed on IDEAS
    11. Simplice A. Asongu & Nicholas Biekpe, 2018. "Globalization and terror in Africa," International Economics, CEPII research center, issue 156, pages 86-97.
    12. Simplice A. Asongu & Stella-Maris I. Orim & Rexon T. Nting, 2019. "Terrorism and social media: global evidence," Working Papers 19/026, European Xtramile Centre of African Studies (EXCAS).
    13. Simplice A. Asongu & Joseph Nnanna, 2019. "Determinants of Access to Weapons: Global Evidence," CEREDEC Working Papers 19/008, Centre de Recherche pour le Développement Economique (CEREDEC).
    14. Simplice A. Asongu & Rexon T. Nting & Evans S. Osabuohien, 2019. "One Bad Turn Deserves Another: How Terrorism Sustains the Addiction to Capital Flight in Africa," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 501-535, September.
    15. Asongu, Simplice A. & Tchamyou, Vanessa S. & Minkoua N., Jules R. & Asongu, Ndemaze & Tchamyou, Nina P., 2018. "Fighting terrorism in Africa: Benchmarking policy harmonization," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 492(C), pages 1931-1957.
    16. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo-Obasi, 2019. "Homicide and Social Media: Global Empirical Evidence," Working Papers 19/049, European Xtramile Centre of African Studies (EXCAS).

    More about this item

    Keywords

    Terrorism; Inclusive development; Military expenditure; Africa;

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:83069. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.