EconPapers    
Economics at your fingertips  
 

How Terrorism Explains 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, unclear and total terrorisms consistently increase capital flight, with the magnitude relative higher from unclear terrorism. Second, for QR: (i) the effect of transnational terrorism is now positively significant in the top quantiles (0.75th and 0.90th) of the capital flight distribution, (ii) domestic and total terrorisms are also significant in the top quantiles and (iii) unclear terrorism is significant in the 0.10th and 0.75th quantiles. Policy implications are discussed.

Keywords: Capital flight; terrorism; Africa (search for similar items in EconPapers)
JEL-codes: C50 D74 F23 N40 O55 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-afr
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/68662/1/MPRA_paper_68662.pdf original version (application/pdf)

Related works:
Working Paper: How Terrorism Explains Capital Flight from Africa (2015) Downloads
Working Paper: How Terrorism Explains Capital Flight from Africa (2015) Downloads
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:68662

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 ().

 
Page updated 2021-05-18
Handle: RePEc:pra:mprapa:68662