Arbeitspapier
How Terrorism Explains Capital Flight from Africa
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.
- Language
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Englisch
- Bibliographic citation
-
Series: AGDI Working Paper ; No. WP/15/034
- Classification
-
Wirtschaft
Econometric Modeling: General
Conflict; Conflict Resolution; Alliances; Revolutions
Multinational Firms; International Business
Economic History: Government, War, Law, International Relations, and Regulation: General, International, or Comparative
Economywide Country Studies: Africa
- Subject
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Capital flight
terrorism
Africa
- Event
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Geistige Schöpfung
- (who)
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Efobi, Uchenna
Asongu, Simplice A.
- Event
-
Veröffentlichung
- (who)
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African Governance and Development Institute (AGDI)
- (where)
-
Yaoundé
- (when)
-
2015
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Efobi, Uchenna
- Asongu, Simplice A.
- African Governance and Development Institute (AGDI)
Time of origin
- 2015
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