Abstract
Design/methodology/approach - Bilateral and multilateral aid indicators are used whereas terrorism includes: domestic, transnational, unclear and total terrorism dynamics. Interactive quantile regressions are used.
Findings - First, with the exception of unclear terrorism, bilateral aid can be used to mitigate the potentially negative effect of terrorism on fuel exports in bottom quintiles of the fuel export distribution. Second, multilateral aid can be used to reduce the negative effect of transnational terrorism on fuel exports exclusively in the highest (90th) quintile of fuel exports. The corresponding modifying thresholds are within policy ranges disclosed in the summary statistics.
Practical implications- While the policy instrument of bilateral aid is most relevant in countries with below-median fuel exports, the policy instrument of multilateral aid is effective with respect to transnational terrorism in countries with the highest levels of fuel exports.
Originality/value –This study contributes to the literature on the role of external flows in reducing the negative externalities of terrorism on development outcomes.
| Original language | English |
|---|---|
| Pages (from-to) | 239-267 |
| Journal | Multinational Business Review |
| Volume | 25 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2017 |
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Keywords
- Exports
- Development
- Natural Resources
- Terrorism
- Foreign Aid
Cite this
Fuel Exports, Aid and Terrorism. / Asongu, Simplice; Nwachukwu, Jacinta.
In: Multinational Business Review, Vol. 25, No. 3, 2017, p. 239-267.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Fuel Exports, Aid and Terrorism
AU - Asongu, Simplice
AU - Nwachukwu, Jacinta
PY - 2017
Y1 - 2017
N2 - Purpose - This study employs interactive quantile regressions to assess the conditional role of foreign aid in reducing the potentially negative effect of terrorism on fuel exports in 78 developing countries for the period 1984-2008.Design/methodology/approach - Bilateral and multilateral aid indicators are used whereas terrorism includes: domestic, transnational, unclear and total terrorism dynamics. Interactive quantile regressions are used. Findings - First, with the exception of unclear terrorism, bilateral aid can be used to mitigate the potentially negative effect of terrorism on fuel exports in bottom quintiles of the fuel export distribution. Second, multilateral aid can be used to reduce the negative effect of transnational terrorism on fuel exports exclusively in the highest (90th) quintile of fuel exports. The corresponding modifying thresholds are within policy ranges disclosed in the summary statistics. Practical implications- While the policy instrument of bilateral aid is most relevant in countries with below-median fuel exports, the policy instrument of multilateral aid is effective with respect to transnational terrorism in countries with the highest levels of fuel exports.Originality/value –This study contributes to the literature on the role of external flows in reducing the negative externalities of terrorism on development outcomes.
AB - Purpose - This study employs interactive quantile regressions to assess the conditional role of foreign aid in reducing the potentially negative effect of terrorism on fuel exports in 78 developing countries for the period 1984-2008.Design/methodology/approach - Bilateral and multilateral aid indicators are used whereas terrorism includes: domestic, transnational, unclear and total terrorism dynamics. Interactive quantile regressions are used. Findings - First, with the exception of unclear terrorism, bilateral aid can be used to mitigate the potentially negative effect of terrorism on fuel exports in bottom quintiles of the fuel export distribution. Second, multilateral aid can be used to reduce the negative effect of transnational terrorism on fuel exports exclusively in the highest (90th) quintile of fuel exports. The corresponding modifying thresholds are within policy ranges disclosed in the summary statistics. Practical implications- While the policy instrument of bilateral aid is most relevant in countries with below-median fuel exports, the policy instrument of multilateral aid is effective with respect to transnational terrorism in countries with the highest levels of fuel exports.Originality/value –This study contributes to the literature on the role of external flows in reducing the negative externalities of terrorism on development outcomes.
KW - Exports
KW - Development
KW - Natural Resources
KW - Terrorism
KW - Foreign Aid
U2 - 10.1108/MBR-03-2017-0013
DO - 10.1108/MBR-03-2017-0013
M3 - Article
VL - 25
SP - 239
EP - 267
JO - Multinational Business Review
JF - Multinational Business Review
SN - 1525-383X
IS - 3
ER -