Terrorism and Investment in Africa: Exploring the Role of Military Expenditure

• Autorzy: Chimere O. Iheonu , Hyacinth E. Ichoku
• Języki publikacji: EN

Abstrakty

EN

The aim of this study is to investigate the influence of military expenditure on the relationship between terrorism and investment in twenty-four African countries for the period 2001 to 2018. The study utilizes fixed effects regression with Driscoll and Kraay standard error and cushions the effect of simultaneity and reverse causality using the lags of the regressors as instruments. The empirical results reveal the negative effect of terrorism on both domestic investment and foreign direct investment (FDI). The study further reveals a negative net effect of military expenditure on the relationship between terrorism and investment. Furthermore, it was discovered that a threshold of 2% to 5% of military expenditure in GDP is required for military expenditure to offset the negative effect of terrorism on FDI. The study recommends that counter-terrorism initiatives be tailored more towards inclusive growth policies, increasing access to education, and improving the quality of governance. (original abstract)

Słowa kluczowe

EN

Terrorism; Military expenditures; Investment; Foreign investment; Direct investments

PL

Terroryzm; Wydatki wojskowe; Inwestycje; Inwestycje zagraniczne; Inwestycje bezpośrednie

• Czasopismo: Economics and Business Review
• Rocznik: 2022
• Tom: 8 (22)
• Numer: nr 2
• Strony: 92--112

Twórcy

autor

Chimere O. Iheonu

• University of Nigeria, Nsukka, Nigeria

autor

Hyacinth E. Ichoku

• University of Nigeria, Nsukka, Nigeria

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Identyfikatory

DOI

10.18559/ebr.2022.2.6