EconPapers    
Economics at your fingertips  
 

Can foreign aid dampen the threat of terrorism to international trade? Evidence from 78 developing countries

Simplice Asongu and Ivo Leke

MPRA Paper from University Library of Munich, Germany

Abstract: The study investigates whether development assistance can be used to crowd-out the negative effect of terrorism on international trade. The empirical evidence is based on a panel of 78 developing countries for the period 1984-2008 and Quantile Regressions. The following main findings are established. First, bilateral aid significantly reduces the negative effect of transnational terrorism on trade in the top quantiles of the trade distribution. Second, multilateral aid also significantly mitigates the negative effect of terrorism dynamics on trade in the top quantiles of the trade distributions. It follows that it is primarily in countries with above median levels of international trade that development assistance can be used as an effective policy tool for dampening the adverse effects of terrorism on trade. Practical implications are discussed.

Keywords: Exports; Foreign Aid; Terrorism; Development (search for similar items in EconPapers)
JEL-codes: F23 F35 F40 O40 Q34 (search for similar items in EconPapers)
Date: 2018-01
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/89368/1/MPRA_paper_89368.pdf original version (application/pdf)

Related works:
Journal Article: Can Foreign Aid Dampen the Threat of Terrorism to International Trade? Evidence from 78 Developing Countries (2019) Downloads
Working Paper: Can foreign aid dampen the threat of terrorism to international trade? Evidence from 78 developing countries (2018) Downloads
Working Paper: Can foreign aid dampen the threat of terrorism to international trade? Evidence from 78 developing countries (2018) Downloads
Working Paper: Can foreign aid dampen the threat of terrorism to international trade? Evidence from 78 developing countries (2018) 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:89368

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 2025-03-31
Handle: RePEc:pra:mprapa:89368