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

Simplice Asongu (Graduate School of Business, University of Cape Town, Cape Town, South Africa)
Jacinta Nwachukwu (Lancashire School of Business and Enterprise, University of Central Lancashire, Preston, UK)
Sara le Roux (Oxford Brookes Business School, Oxford, UK)

Journal of Economic Studies

ISSN: 0144-3585

Publication date: 2 August 2019

Abstract

Purpose

The purpose of this paper is to investigate 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

The authors have complemented the sparse literature on the use of policy variables to mitigate the effect of policy syndromes on macroeconomic outcomes.

Keywords

Citation

Asongu, S., Nwachukwu, J. and le Roux, S. (2019), "The role of inclusive development and military expenditure in modulating the effect of terrorism on governance", Journal of Economic Studies, Vol. 46 No. 3, pp. 681-709. https://doi.org/10.1108/JES-11-2017-0343

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Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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