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Book part

Matthew Costello

A growing literature links oil to conflict, particularly civil war. Greed/opportunity, grievance, and weak state arguments have been advanced to explain this relationship…

Abstract

A growing literature links oil to conflict, particularly civil war. Greed/opportunity, grievance, and weak state arguments have been advanced to explain this relationship. This chapter builds on the literature on oil and conflict in two important ways. First, I examine a novel dependent variable, domestic terrorism. Much is known about the effect of oil on the onset, duration, and intensity of civil war, though we know surprisingly little about the potential influence of oil on smaller, more frequent forms of violence. Second, I treat oil ownership as a variable, not a constant, coding oil rents based on ownership structure. This is contrary to other related studies that assume oil is necessarily owned by the state. Using a large, cross-national sample of states from 1971 to 2007, several key findings emerge. Notably, publicly owned oil exhibits a positive effect on domestic terrorism. This positive effect dissipates, however, when political performance and state terror are controlled for. Privately owned oil, on the other hand, does not correlate with increased incidences of terror. This suggests that oil is not a curse, per se.

Details

Non-State Violent Actors and Social Movement Organizations
Type: Book
ISBN: 978-1-78714-190-2

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Book part

Kaisa Hinkkainen

An investigation of parallels between homegrown, international, and domestic terrorism.

Abstract

Purpose

An investigation of parallels between homegrown, international, and domestic terrorism.

Methodology/approach

A comparative method is used to analyze data from two main sources, ITERATE data on international and the TWEED data on domestic terrorism. The similarities are tested in various dimensions – target types, severity, and the method of the attacks.

Findings

Homegrown terrorism is inherently motivated by domestic issues. Moreover, variables of ethnic heterogeneity, political inclusiveness of fringe groups, and problems in the democratization process are good predictors of the occurrence of other forms of domestic and homegrown terrorism alike.

Research limitations/implications

Number of observable cases of homegrown terrorism are low. The two main datasets have potentially overlapping incidents.

Originality/value

Provides and operational definition of homegrown terrorism and test empirically the similarity between homegrown and other types of terrorisms.

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Article

Simplice Asongu and Oasis Kodila-Tedika

This paper aims to assess the role of foreign aid in reducing the hypothetically negative impact of terrorism on trade using a panel of 78 developing countries with data…

Abstract

Purpose

This paper aims to assess the role of foreign aid in reducing the hypothetically negative impact of terrorism on trade using a panel of 78 developing countries with data for the period 1984-2008.

Design/methodology/approach

The empirical evidence is based on interactive generalised method of moment estimations with forward orthogonal deviations. Bilateral, multilateral and total aid dynamics are used, whereas terrorism entails domestic, transnational, unclear and total terrorism dynamics.

Findings

The following findings have been established. First, while bilateral aid has no significant effect on trade, multilateral aid and total aid have positive impacts. Second total terrorism, domestic terrorism and transnational terrorism increase trade with increasing order of magnitude. Third, corresponding negative marginal effects on the interaction between foreign aid (bilateral and total) and terrorism display thresholds that are within range. Fourth, there is scant evidence of positive net effects. Overall, the findings broadly indicate that foreign aid is a necessary but not a sufficient policy tool for completely dampening the effects of terrorism on trade.

Originality/value

There is a growing policy interest in the relationship between terrorism and international development outcomes.

Details

International Journal of Development Issues, vol. 16 no. 1
Type: Research Article
ISSN: 1446-8956

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Book part

Daniel Meierrieks

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.

Details

Understanding Terrorism
Type: Book
ISBN: 978-1-78350-828-0

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Article

Simplice Asongu, Jacinta Nwachukwu and Sara le Roux

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.

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.

Details

Journal of Economic Studies, vol. 46 no. 3
Type: Research Article
ISSN: 0144-3585

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Article

Simplice Asongu and Jacinta Nwachukwu

This study aims to use interactive quantile regressions to assess the conditional role of foreign aid in reducing the potentially negative effect of terrorism on fuel…

Abstract

Purpose

This study aims to use interactive quantile regressions to assess the conditional role of foreign aid in reducing the potentially negative effect of terrorism on fuel exports in 78 developing countries for the period of 1984-2008.

Design/methodology/approach

Bilateral and multilateral aid indicators have been used, whereas terrorism includes domestic, transnational, unclear and total terrorism dynamics. Interactive quantile regressions have been used.

Findings

First, with the exception of unclear terrorism, bilateral aid can be used to mitigate the potentially negative effects of terrorism on fuel exports in bottom quantiles of the fuel export distribution. Second, multilateral aid can be used to reduce the negative effect of transnational terrorism on fuel exports exclusively in the highest (90th) quantile of fuel exports. The corresponding modifying thresholds are within policy ranges disclosed in the summary statistics.

Practical implications

While the policy instrument of bilateral aid is most relevant in countries with below-median fuel exports, the policy instrument of multilateral aid is effective with respect to transnational terrorism in countries with the highest levels of fuel exports.

Originality/value

This study contributes to the literature on the role of external flows in reducing the negative externalities of terrorism on development outcomes.

Details

Multinational Business Review, vol. 25 no. 3
Type: Research Article
ISSN: 1525-383X

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Book part

Lawal Adedoyin Isola, Babajide Abiola Ayopo, Asaleye Abiola and IseOlorunkanmi O. Joseph

Recent evidences show that terrorism is becoming frequent in Nigeria, ranging from incessant Boko Haram activities in the North East; Independent People of Biafra (IPOB…

Abstract

Recent evidences show that terrorism is becoming frequent in Nigeria, ranging from incessant Boko Haram activities in the North East; Independent People of Biafra (IPOB) activities in the South-East states, kidnapping and vandalizing oil pipes in the South-South, Fulani-herdsmen attacks in the Middle Belt, among others. In an attempt to tackle terrorism, the Federal Government at different times adopted military actions with little or no lasting solution. The Have and Have-nots hypothesis (Shahbaz, 2013) stresses the role of economic phenomenon in determining the causes of terrorism. It is on this note that this chapter investigates the linkages between economic growth proxy by gross domestic product per capita (GDPPC) and other fundamental variables such as inflation, unemployment, and inequality gaps, among others; and terrorism in Nigeria. We intend to know whether cointegration exists between the two constructs; and if it does, is there causality? The study employed both the autoregressive distributed lag (ARDL) and the vector error correction model (VECM) approaches to examine the existence of or otherwise a long-run relationship as well as causality among the constructs. Results reveal that a compelling cointegrating relationship exists among the variables. It is further revealed that unemployment, inequality, poverty, inflation, among others, Granger cause terrorism. It stresses that the Have-not hypothesis explained the causes of terrorism in Nigeria. The study therefore suggests that policy makers should, in order to prevent or combat terrorism, focus on improving the economy by creating job opportunities through provision of conducive environment that supports businesses and reduces inequality gaps.

Details

The Impact of Global Terrorism on Economic and Political Development
Type: Book
ISBN: 978-1-78769-919-9

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Book part

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…

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.

Details

The Impact of Global Terrorism on Economic and Political Development
Type: Book
ISBN: 978-1-78769-919-9

Keywords

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Book part

David MacGregor

Pyrotechnic effects and spectacular death belong to the symbolism of terror and political assassination – bizarre techniques of miscommunication through fear practiced on…

Abstract

Pyrotechnic effects and spectacular death belong to the symbolism of terror and political assassination – bizarre techniques of miscommunication through fear practiced on the innocent and designed to effect social change. While focusing on the use of terror in 9-11, this article deals with both terror and political assassination as closely related communicative practices of death. It outlines a theory of terrorism that suggests September 11 may be an example of expedient terrorist destruction ordered from within the state, a macabre instance of a state protection racket. Commentators on the left tend to see terrorism as a blow extended by the oppressed against exploiters. However, terrorism is much less likely to be a manifestation of a revolt by – or on behalf of – the underprivileged than a demonstration of brute force by the state or its agents. Machiavellian state terrorism is terror/assassination performed for reasons different from the publicized ones; often initiated by persons or groups other than those suspected of the act; and – most important – secretly perpetrated by, or on behalf, of the violated state itself. Machiavellian state terror advances the ruling agenda, while disguising itself as the work of individuals or groups opposed to the state's fundamental principles. As an example, the article reviews a mysterious 1971 assassination in Paris that obliquely foreshadows some critical elements of the official story of 9-11. The article underlines the importance of oppositional theorizing: questioning government and looking for connections between events are critical features of what it means to be vitally active in the political universe.

Details

The Hidden History of 9-11-2001
Type: Book
ISBN: 978-1-84950-408-9

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Book part

Ezebuilo R. Ukwueze, Henry T. Asogwa, Ozoemena S. Nwodo and Oliver E. Ogbonna

The relationship between terrorism and foreign direct investment (FDI) has stimulated research curiosity given its effects on lives lost, injuries, property damaged, and…

Abstract

The relationship between terrorism and foreign direct investment (FDI) has stimulated research curiosity given its effects on lives lost, injuries, property damaged, and the psychological aftereffects, which to a very large extent impact economic growth and development. The realization of the magnitude of its influence on bilateral economic ties engineered the study, which examined the impact of terrorism on FDI in Nigeria. The data for this study were sourced from Global Terrorism Index (GTI), Stockholm International Peace Research Institute (SIPRI) database, International Country Risk Guide (ICRG)’s Quality of Governance (QoG) database, Central Bank of Nigeria (CBN) Bulletin, and World Bank Development Indicators (WDI) using autoregressive distributive lag (ARDL) bounds testing approach as described by Pesaran et al. (2001). From the results obtained, military expenditure, episode(s) of ethnic violence, and terrorist attacks have all been noted to have negative and significant impacts on FDI in Nigeria. The implication is that the reduction in FDI observed in the data is attributed to terrorism. Therefore, governments should overhaul the security apparatus so as to quell the menace of terrorists. This will go a long way to create a conducive environment for FDI to thrive, which will create more jobs for the growth and development of the Nigerian economy.

Details

The Impact of Global Terrorism on Economic and Political Development
Type: Book
ISBN: 978-1-78769-919-9

Keywords

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