Terrorism and Capital Flight from Africa

Uchenna Efobi and Simplice Asongu

MPRA Paper from University Library of Munich, Germany

Abstract: We assess the effects of terrorism on capital flight in a panel of 29 African countries for which data is available for the period 1987-2008. The terrorism dynamics entail domestic, transnational, unclear and total terrorisms. The empirical evidence is based on Generalised Method of Moments (GMM) with forward orthogonal deviations and Quantile regressions (QR). The following findings are established. First, for GMM, domestic, transnational, unclear and total terrorisms consistently increase capital flight. Second, for QR, with the exception of transnational terrorism for which a positive effect on capital flight is apparent in the 0.90th quintile, terrorism dynamics affect capital flight in low quintiles of the capital flight distribution. In other words, terrorism increases capital flight for the most part when initial levels of capital flight are low. Policy implications are discussed.

Keywords: Africa; Capital flight; Foreign capital; Terrorism; Violence. (search for similar items in EconPapers)
JEL-codes: C50 D74 F23 F40 O55 (search for similar items in EconPapers)
Date: 2016-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (70)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/74651/1/MPRA_paper_74651.pdf original version (application/pdf)

Related works:
Journal Article: Terrorism and capital flight from Africa (2016)
Journal Article: Terrorism and capital flight from Africa (2016)
Working Paper: Terrorism and Capital Flight from Africa (2016)
Working Paper: Terrorism and Capital Flight from Africa (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:74651

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).