Terrorism: the impact on entrepreneurship

Driss Tsouli

Chapter 8 in Handbook of Research on Entrepreneurship and Conflict, 2024, pp 145-166 from Edward Elgar Publishing

Abstract: This chapter extends the existing literature on terrorism and entrepreneurship by analyzing the factors affecting terrorism and assessing the impact of terrorism on different types of entrepreneurship (Nascent Entrepreneurship, Established Business Ownership, and Entrepreneurial Career Choice) for a panel of 13 populated countries over the period of 2001-19. The estimation findings indicate that GDP per capita, inflation, voice and accountability, unemployment, control of corruption, labour force, inequality, and poverty are the determinants of terrorism. The findings reveal that terrorism affects positively nascent entrepreneurship. Similarly, terrorism has a significant positive impact on established business ownership (EBO). The coefficient indicates that when the terrorism index increases by 1%, EBO will increase by 1.242%. Terrorism affects negatively the choice to be an entrepreneur. The result shows that when the terrorism index increases by 1%, the choice to be an entrepreneur reduces by 0.631%.

Keywords: Business and Management; Economics and Finance; Politics and Public Policy General Academic Interest (search for similar items in EconPapers)
Date: 2024
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