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Natural Resource Exports, Foreign Aid and Terrorism

Simplice Asongu ()

International Journal of Development and Conflict, 2019, vol. 9, issue 1, 74-94

Abstract: This study investigates linkages between foreign aid, terrorism and natural resource (fuel and iron ore) exports in 78 developing countries from 1984 to 2008. The empirical evidence is based on interactive GMM estimations with forward orthogonal deviations. Bilateral, multilateral and total aid dynamics are employed whereas terrorism entails: domestic, transnational, unclear and total terrorism dynamics. The following findings are established. First, the information criteria for the validity of specifications corresponding to iron ore exports do not hold. Second, there is evidence of convergence in fuel exports. Third, while the effects of aid dynamics are not significant, the impacts of terrorism dynamics are consistently positive on fuel exports. Fourth, the interaction between terrorism and aid dynamics consistently display negative signs, with corresponding modifying aid thresholds within respective ranges. Unexpected signs are elicited and policy implications discussed. The inquiry improves extant knowledge on nexuses between resources, terrorism and foreign aid.

Keywords: Exports; Foreign Aid; Terrorism; Natural Resources; Development (search for similar items in EconPapers)
JEL-codes: F23 F35 F40 O40 Q34 (search for similar items in EconPapers)
Date: 2019
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Related works:
Working Paper: Natural Resource Exports, Foreign Aid and Terrorism (2019) Downloads
Working Paper: Natural Resource Exports, Foreign Aid and Terrorism (2019) Downloads
Working Paper: Natural Resource Exports, Foreign Aid and Terrorism (2019) Downloads
Working Paper: Natural Resource Exports, Foreign Aid and Terrorism (2019) Downloads
Working Paper: Natural Resource Exports, Foreign Aid and Terrorism (2019) Downloads
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