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The purpose of this contribution is to review the theoretical and empirical literature on the economic determinants of terrorism.
Abstract
Purpose
The purpose of this contribution is to review the theoretical and empirical literature on the economic determinants of terrorism.
Methodology/approach
Review of the relevant academic literature.
Findings
This contribution shows that there is a theoretical foundation to the popular hypothesis that poor economic conditions are conducive to terrorism. A review of the empirical evidence on the economic determinants of terrorism, however, yields an inconclusive result. Some studies find that economic conditions (directly and indirectly) matter to terrorism, whereas a plurality of studies suggest that noneconomic factors are more important.
Research limitations/implications
The findings of the survey indicate that it is unlikely that economic conditions are universal determinants of terrorism. By pointing at several avenues of future research (e.g., a focus on the role of ideology in terrorism), this contribution, however, argues that the opposite also does not need to be true. The influence of economic factors on terrorism should neither be overemphasized nor completely ruled out.
Originality/value of chapter
The contribution offers a comprehensive overview of the economy–terrorism nexus and hints at promising areas of future research.
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Ryan Bakker, Daniel W. Hill and Will H. Moore
The purpose of this study is to assess the ability of a theoretically motivated statistical model to accurately forecast annual, national counts of terror attacks out-of-sample.
Abstract
Purpose
The purpose of this study is to assess the ability of a theoretically motivated statistical model to accurately forecast annual, national counts of terror attacks out-of-sample.
Methodology/approach
Bayesian multi-level models, classification analysis, marginal calibration plots
Findings
We find that the model forecasts reasonably well, but conclude that its overall performance suggests that it is not ready for use in policy planning. This is likely due to the coarse temporal and spatial aggregation of the data.
Research limitations/implications
The implications of this study are that social scientists should devote more effort into evaluating the predictive power of their statistical models, and that annual, national data on violent conflict are probably too coarse to provide useful information for policy planning.
Originality/value of paper
The primary value of our modeling effort is to provide a baseline against which to evaluate the performance of more region- and country-specific models to be developed in the future.
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Richardson Kojo Edeme and Chigozie Nelson Nkalu
In addition to their effects on economic growth, prolonged terrorist activities can reduce government revenue. Apart from the destruction of physical infrastructure and human…
Abstract
In addition to their effects on economic growth, prolonged terrorist activities can reduce government revenue. Apart from the destruction of physical infrastructure and human capital, terrorism also has lagged-effect on investment, which ultimately dampens the fiscal position and further affects the economic growth. This chapter is devoted to the discussion on the interaction between terrorism, growth, and fiscal variables in Nigeria using real per capita income, government revenue, government expenditure and defense expenditure. The findings show that terrorism is associated with low economic growth which has the potency to reduce government expenditure. It was also observed that government expenditure can be improved by fostering government revenue. In view of this, apart from domestic efforts, interventions of international communities are further needed to reduce the drastic effects of terrorism, especially in meeting and improving expenditure on growth-enhancing sectors.
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The purpose of this study is to investigate the impact of terrorist attacks on the volatility and returns of the stock market in Tunisia.
Abstract
Purpose
The purpose of this study is to investigate the impact of terrorist attacks on the volatility and returns of the stock market in Tunisia.
Design/methodology/approach
The employed sample comprises 1250 trading day from the Tunisian stock index (Tunindex) and stock closing prices of 64 firms listed on the Tunisian stock market (TSM) from January 2011 to October 2015. The research opts for the general autoregressive conditional heteroscedasticity (GARCH) and exponential generalized conditional heteroscedasticity (EGARCH) models framework in addition to the event study method to further assess the effect of terrorism on the Tunisian equity market.
Findings
The baseline results document a substantive impact of terrorism on the returns and volatility of the TSM index. In more details, the findings of the event study method show negative significant effects on mean abnormal returns with different magnitudes over the events dates. The outcomes propose that terrorism profoundly altered the behavior of the stock market and must receive sufficient attention in order to protect the financial market in Tunisia.
Originality/value
Very few evidence is found on the financial effects of terrorism over transition to democracy cases. This paper determines the salient reaction of the stock market to terrorism during democratic transition. The findings of this study shall have relevant implications for stock market participants and policymakers.
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Keywords
Elle Xiaoyan Huang and Xueying Zou
This paper aims to understand how cultural and creative industries (CCIs) contribute to regional innovation.
Abstract
Purpose
This paper aims to understand how cultural and creative industries (CCIs) contribute to regional innovation.
Design/methodology/approach
This paper explores the process of CCIs contributing to regional innovation and assesses the accumulated outcome of this process.
Findings
The authors conclude that CCIs contribute to a city’s innovation involving five dimensions (time, space, tangible, intangible and division) and four phases (people, tool, collaboration and brokerage) and the contributions are accumulated into positive innovation outcome; however, a highly developed economy is relatively unsupportive of CCIs contributing to regional innovation.
Originality/value
The main contributions are that the authors configured the detailed process of CCIs contributing to regional innovation and the authors quantitatively measured the impact of CCIs on regional innovation, using the Porter diamond model and Shannon entropy to construct the CCI index.
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Anas Al Qudah, Ahmed Bani-Mustafa and Ahmed Yamen
In this study, the authors aim to investigate the control of corruption (COC) mechanism and the rule of law (ROL) in mediating the effect of culture on terrorism financing. Thus…
Abstract
Purpose
In this study, the authors aim to investigate the control of corruption (COC) mechanism and the rule of law (ROL) in mediating the effect of culture on terrorism financing. Thus, whether the COC and the ROL can mediate the effect of culture on terrorism financing across 78 countries has been examined. This study can provide additional evidence about the importance of having good institutional quality to hinder any deviant behavior like terrorism financing.
Design/methodology/approach
Structural equation modeling is used to test the mechanism of the ROL and COC in mediating the effect of culture on terrorist financing (TF). This research tries to investigate the indirect path of culture in TF through COC and ROL and to examine the role of institutions in motivating or demotivating the deviant behaviors.
Findings
The results revealed that COC and ROL completely mediate the relation between culture and TF. This supports the postulation that there is an indirect relationship between culture and TF. Also, the results indicate that ROL is more powerful than COC, as a governmental tool, in controlling TF.
Originality/value
This paper highlights the fact that, according to authors’ research, this is the first study, to the best of their knowledge, that tests the mechanism of the ROL and COC in mediating the effect of culture on TF actions and money laundry.
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Amal Jmaii and Noomene Zaafouri
This paper provides a new empirical evidence of the impact of Global security on economic growth in Tunisia. Like Buzan (1991), the framework used four types of security: army…
Abstract
Purpose
This paper provides a new empirical evidence of the impact of Global security on economic growth in Tunisia. Like Buzan (1991), the framework used four types of security: army security, economic security, social security, and political security.
Design/methodology/approach
The authors examine the multidimensionality of global security using ARDL-based cointegration bound tests. The model allows also for examining the long-run/short-run impacts of global security indicators on economic growth.
Findings
The proposed methodology revealed interesting results that may raise some potentially prominent policy implications. First, the findings show that the four security indicators have a significant impact on economic growth. In particular, from a social/political security point of view, the fundamental objective is to satisfy the needs of the poorest population, to limit the effect of social demands and protests on economic and political stability, to review the subsidy principle and aid policy to the poorest families, for greater efficiency and social equity.
Originality/value
The study highlights that global security is no longer a question of just army and defense, but it is also a question of equity, economic, social, and political development. These results call for the policymaker to adopt a strategy that reduces regional disparities and social inequalities and this through fairly distributing financial wealth for the benefit of marginalized populations.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0082
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Simplice Asongu, Oludele Folarin and Nicholas Biekpe
The purpose of this paper is to investigate the stability of demand for money in the proposed Southern African Monetary Union (SAMU).
Abstract
Purpose
The purpose of this paper is to investigate the stability of demand for money in the proposed Southern African Monetary Union (SAMU).
Design/methodology/approach
The study uses annual data for the period 1981 to 2015 from ten countries making-up the Southern African Development Community. A standard function of demand for money is designed and estimated using a bounds testing approach to co-integration and error-correction modeling.
Findings
The findings show divergence across countries in the stability of money. This divergence is articulated in terms of differences in cointegration, CUSUM (cumulative sum) and CUSUMSQ (CUSUM squared) tests, short run and long-term determinants and error correction in event of a shock. Policy implications are discussed in the light of the convergence needed for the feasibility of the proposed SAMU.
Originality/value
This study extends the debate in scholarly and policy circles on the feasibility of proposed African monetary unions.
Details