AGDI currently has about 300 publications.
2018 |
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| 1. | Simplice Asongu, Nicholas Odhiambo 2018. Abstract | Links | BibTeX | Tags: Economic Growth; Emerging countries; Quantile regression @unpublished{Asongu,2018, title = {Drivers of Growth in Fast Emerging Economies: a Dynamic Instrumental Quantile Approach to Real Output and its Rates of Growth in BRICS and MINT countries, 2001-2011}, author = {Simplice Asongu, Nicholas Odhiambo }, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Drivers-of-Growth-in-Fast-Emerging-Economies.pdf}, year = {2018}, date = {2018-04-18}, abstract = {We analyze the evolution of fast emerging economies of the BRICS (Brazil, Russia, India, China & South Africa) and MINT (Mexico, Indonesia, Nigeria & Turkey) countries, by assessing growth determinants throughout the conditional distributions of the growth rate and real GDP output for the period 2001-2011. An instrumenal variable (IV) quantile regression approach is complemented with Two-Stage-Least Squares and IV Least Absolute Deviations. We find that the highest rates of growth of real GDP per head, among the nine countries of this study, corresponded to China, India, Nigeria, Indonesia and Turkey, but the highest increases in real GDP per capita corresponded, in descending order, to Turkey China, Brazil, South Africa and India. This study analyzes the impacts of several indicators on the increase of the rate of growth of real GDP and on the logarithm of the real GDP. We analyze several limitations of the methodology, related with the selection of the explained and the explanatory variables, the effect of missing variables, and the particular problems of some indicators. Our results show that Net Foreign Direct Investment, Natural Resources, and Political Stability have a positive and significant impact on the rate of growth of real GDP or on real GDP.}, keywords = {Economic Growth; Emerging countries; Quantile regression}, pubstate = {published}, tppubtype = {unpublished} } We analyze the evolution of fast emerging economies of the BRICS (Brazil, Russia, India, China & South Africa) and MINT (Mexico, Indonesia, Nigeria & Turkey) countries, by assessing growth determinants throughout the conditional distributions of the growth rate and real GDP output for the period 2001-2011. An instrumenal variable (IV) quantile regression approach is complemented with Two-Stage-Least Squares and IV Least Absolute Deviations. We find that the highest rates of growth of real GDP per head, among the nine countries of this study, corresponded to China, India, Nigeria, Indonesia and Turkey, but the highest increases in real GDP per capita corresponded, in descending order, to Turkey China, Brazil, South Africa and India. This study analyzes the impacts of several indicators on the increase of the rate of growth of real GDP and on the logarithm of the real GDP. We analyze several limitations of the methodology, related with the selection of the explained and the explanatory variables, the effect of missing variables, and the particular problems of some indicators. Our results show that Net Foreign Direct Investment, Natural Resources, and Political Stability have a positive and significant impact on the rate of growth of real GDP or on real GDP. |
| 2. | Simplice A. Asongu Nicholas Biekpe, Vanessa Tchamyou S Information Asymmetry, Financialization and Financial Access Unpublished 2018. Abstract | Links | BibTeX | Tags: Remittances; ICT; Doing business; Development; Africa @unpublished{Asongu,2018, title = {Information Asymmetry, Financialization and Financial Access }, author = {Simplice A. Asongu, Nicholas Biekpe, Vanessa S. Tchamyou}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Remittances-ICT-and-Doing-Business-in-Sub-Saharan-Africa.pdf}, year = {2018}, date = {2018-04-10}, abstract = {Purpose – This study examines how linkages between information and communication technology (ICT) and remittances affect the doing of business. Design/methodology/approach – The focus is on a panel of 49 sub-Saharan African countries for the period 2000-2012. The empirical evidence is based on Generalised Method of Moments. Findings – While we establish some appealing results in terms of net negative effects on constraints to the doing of business (i.e. time to start a business and time to pay taxes), some positive net effects are also apparent (i.e. number of start-up procedures, time to build a warehouse and time to register a property). We also establish ICT penetration thresholds at which the unconditional effect of remittances can be changed from positive to negative, notably: (i) for the number of start-up procedures, an internet level of 9.00 penetration per 100 people is required while (ii) for the time to build a warehouse, a mobile phone penetration level of 32.33 penetration per 100 people is essential. Practical and theoretical implications are discussed. Originality/value – To the best of our knowledge, this is the first study to assess linkages between ICT, remittances and doing business in Sub-Saharan Africa.}, keywords = {Remittances; ICT; Doing business; Development; Africa}, pubstate = {published}, tppubtype = {unpublished} } Purpose – This study examines how linkages between information and communication technology (ICT) and remittances affect the doing of business. Design/methodology/approach – The focus is on a panel of 49 sub-Saharan African countries for the period 2000-2012. The empirical evidence is based on Generalised Method of Moments. Findings – While we establish some appealing results in terms of net negative effects on constraints to the doing of business (i.e. time to start a business and time to pay taxes), some positive net effects are also apparent (i.e. number of start-up procedures, time to build a warehouse and time to register a property). We also establish ICT penetration thresholds at which the unconditional effect of remittances can be changed from positive to negative, notably: (i) for the number of start-up procedures, an internet level of 9.00 penetration per 100 people is required while (ii) for the time to build a warehouse, a mobile phone penetration level of 32.33 penetration per 100 people is essential. Practical and theoretical implications are discussed. Originality/value – To the best of our knowledge, this is the first study to assess linkages between ICT, remittances and doing business in Sub-Saharan Africa. |
| 3. | Simplice A. Asongu, Vanessa Tchamyou S Human capital, knowledge creation, knowledge diffusion, institutions and economic incentives: South Korea versus Africa Journal Article Contemporary Social Science, 2018. Abstract | Links | BibTeX | Tags: Knowledge economy; Benchmarks; Policy syndromes; Catch-up; Africa @article{Asongu,2018, title = {Human capital, knowledge creation, knowledge diffusion, institutions and economic incentives: South Korea versus Africa}, author = {Simplice A. Asongu, Vanessa S. Tchamyou }, url = {https://www.tandfonline.com/doi/full/10.1080/21582041.2018.1457170}, doi = {10.1080/21582041.2018.1457170}, year = {2018}, date = {2018-03-29}, journal = {Contemporary Social Science}, abstract = {This article compares African countries to South Korea in terms of knowledge economy (KE). Emphasis is laid on human capital, knowledge creation, knowledge diffusion, institutions and economic incentives. The analytical approach consists of providing KE catch-up strategies that can be understood within the context of country-specific gaps between the frontier country in KE and laggard African countries. The empirical evidence is based on sigma convergence with data for the period 1996–2010. Overall, a KE diagnosis is provided by assessing KE gaps (between South Korea and specific-African countries) and suggesting compelling catch-up strategies with which to reduce identified gaps. Contemporary and non-contemporary policies from South Korea and more contemporary policies based on challenges of globalisation are discussed. The policy relevance of this inquiry aligns with the scholarly perspective that catch-up between South Korea and more advanced economies was accelerated by the former adapting to and assimilating relatively obsolete technological know-how from more developed nations.}, keywords = {Knowledge economy; Benchmarks; Policy syndromes; Catch-up; Africa}, pubstate = {published}, tppubtype = {article} } This article compares African countries to South Korea in terms of knowledge economy (KE). Emphasis is laid on human capital, knowledge creation, knowledge diffusion, institutions and economic incentives. The analytical approach consists of providing KE catch-up strategies that can be understood within the context of country-specific gaps between the frontier country in KE and laggard African countries. The empirical evidence is based on sigma convergence with data for the period 1996–2010. Overall, a KE diagnosis is provided by assessing KE gaps (between South Korea and specific-African countries) and suggesting compelling catch-up strategies with which to reduce identified gaps. Contemporary and non-contemporary policies from South Korea and more contemporary policies based on challenges of globalisation are discussed. The policy relevance of this inquiry aligns with the scholarly perspective that catch-up between South Korea and more advanced economies was accelerated by the former adapting to and assimilating relatively obsolete technological know-how from more developed nations. |
| 4. | Asongu, Simplice Asongu; Ndemaze A Comparative determinants of quality of growth in developing countries Journal Article International Journal of Happiness and Development, 4 (1), pp. 65-98 , 2018. Abstract | Links | BibTeX | Tags: Quality of growth; Development @article{Asongu,2018, title = { Comparative determinants of quality of growth in developing countries}, author = {Simplice A. Asongu; Ndemaze Asongu}, url = {http://www.inderscience.com/offer.php?id=90491}, doi = {10.1504/IJHD.2018.10011595}, year = {2018}, date = {2018-03-27}, journal = {International Journal of Happiness and Development}, volume = {4}, number = {1}, pages = {65-98 }, abstract = {This study explores a new dataset in order to present the comparative determinants of growth quality in 93 developing countries for the period 1990-2011. We employ both cross-sectional and panel estimation techniques with contemporary and non-contemporary specifications. The determinants are quite heterogeneous in significance and magnitude with substantial inclinations to specifications and estimation techniques. We present and discuss the findings in increasing magnitude of significance so as to ease comparative readability. We also discuss how specificities in the modelling techniques are relevant for targeting growth quality. The results are timely and relevant for the post-2015 inclusive and sustainable development agenda.}, keywords = {Quality of growth; Development}, pubstate = {published}, tppubtype = {article} } This study explores a new dataset in order to present the comparative determinants of growth quality in 93 developing countries for the period 1990-2011. We employ both cross-sectional and panel estimation techniques with contemporary and non-contemporary specifications. The determinants are quite heterogeneous in significance and magnitude with substantial inclinations to specifications and estimation techniques. We present and discuss the findings in increasing magnitude of significance so as to ease comparative readability. We also discuss how specificities in the modelling techniques are relevant for targeting growth quality. The results are timely and relevant for the post-2015 inclusive and sustainable development agenda. |
| 5. | Asongu, S A Comparative sustainable development in sub-Saharan Africa Journal Article Sustainable Development, 2018. Abstract | Links | BibTeX | Tags: CO2 emissions; Sustainable development; Environment; Africa @article{Asongu,2018, title = {Comparative sustainable development in sub-Saharan Africa}, author = {Asongu, S. A}, url = {http://onlinelibrary.wiley.com/doi/10.1002/sd.1733/full}, doi = {10.1002/sd.1733}, year = {2018}, date = {2018-03-18}, journal = {Sustainable Development}, abstract = {Motivated by sustainable development challenges in sub-Saharan Africa, this study assesses the comparative persistence of environmental unsustainability in a sample of 44 countries in the subregion for the period 2000–2012. The empirical evidence is based on Generalized Method of Moments. Of the six hypotheses tested, it is not feasible to assess the hypothesis on resource-wealth because of issues in the degrees of freedom. For the remaining hypotheses, the following findings are established. (i) Hypothesis 1 postulating that middle-income countries have a lower level of persistence in carbon dioxide (CO2) emissions is valid for CO2 per-capita emissions, CO2 emissions from electricity and heat production and CO2 emissions from liquid fuel consumption. (ii) Hypothesis 2 that countries on the edge of French civil law is valid for CO2 emissions from liquid fuel consumption and CO2 intensity, but not for CO2 per-capita emissions. (iii) Hypothesis 3 on the postulation that politically unstable countries reflect more persistence is valid for CO2 per-capita emissions. (iv) Hypothesis 5 on the propensity for landlocked countries to be associated with more persistence in CO2 emissions is valid for CO2 per-capita emissions but not for CO2 emissions from liquid fuel consumption. (v) Hypothesis 6 maintaining that Christianity-dominated countries are more environmentally friendly with regard to CO2 emissions is valid for CO2 per-capita emissions but not for CO2 emissions from liquid fuel consumption and CO2 intensity. Implications for policy and theory are discussed.}, keywords = {CO2 emissions; Sustainable development; Environment; Africa}, pubstate = {published}, tppubtype = {article} } Motivated by sustainable development challenges in sub-Saharan Africa, this study assesses the comparative persistence of environmental unsustainability in a sample of 44 countries in the subregion for the period 2000–2012. The empirical evidence is based on Generalized Method of Moments. Of the six hypotheses tested, it is not feasible to assess the hypothesis on resource-wealth because of issues in the degrees of freedom. For the remaining hypotheses, the following findings are established. (i) Hypothesis 1 postulating that middle-income countries have a lower level of persistence in carbon dioxide (CO2) emissions is valid for CO2 per-capita emissions, CO2 emissions from electricity and heat production and CO2 emissions from liquid fuel consumption. (ii) Hypothesis 2 that countries on the edge of French civil law is valid for CO2 emissions from liquid fuel consumption and CO2 intensity, but not for CO2 per-capita emissions. (iii) Hypothesis 3 on the postulation that politically unstable countries reflect more persistence is valid for CO2 per-capita emissions. (iv) Hypothesis 5 on the propensity for landlocked countries to be associated with more persistence in CO2 emissions is valid for CO2 per-capita emissions but not for CO2 emissions from liquid fuel consumption. (v) Hypothesis 6 maintaining that Christianity-dominated countries are more environmentally friendly with regard to CO2 emissions is valid for CO2 per-capita emissions but not for CO2 emissions from liquid fuel consumption and CO2 intensity. Implications for policy and theory are discussed. |
| 6. | Riccardo Pelizzo Lucas Katera, Stephen Mwombela Lulu Olan’g Poverty and development in Tanzania Unpublished 2018. Abstract | Links | BibTeX | Tags: Afrobarometer, Development, Inequality, lived poverty, Poverty, Tanzania @unpublished{Asongu,2018, title = {Poverty and development in Tanzania}, author = {Riccardo Pelizzo, Lucas Katera, Stephen Mwombela, Lulu Olan’g}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Poverty_in_tanzania.pdf}, year = {2018}, date = {2018-03-18}, abstract = {The paper investigates the relationship between development, as measured by the GNI per capita and lived poverty in Tanzania which is measured on the basis of whether and how often respondents go, in the course of one year, without food, water, medical care, cooking fuel and cash income. By using the data collected by Afrobarometer in Tanzania, we are able to create one set of indicators that capture the extension of lived poverty, that is what percentage of the respondents, experiences deprivation, but we also develop a series of indicators that capture the severity of lived poverty, that is how frequently respondents experience this problem. Our statistical analyses reveal that while Tanzanian progress along the developmental path did not have a significant impact on the extension of lived poverty, it made a large and significant contribution to reduce its severity.}, keywords = {Afrobarometer, Development, Inequality, lived poverty, Poverty, Tanzania}, pubstate = {published}, tppubtype = {unpublished} } The paper investigates the relationship between development, as measured by the GNI per capita and lived poverty in Tanzania which is measured on the basis of whether and how often respondents go, in the course of one year, without food, water, medical care, cooking fuel and cash income. By using the data collected by Afrobarometer in Tanzania, we are able to create one set of indicators that capture the extension of lived poverty, that is what percentage of the respondents, experiences deprivation, but we also develop a series of indicators that capture the severity of lived poverty, that is how frequently respondents experience this problem. Our statistical analyses reveal that while Tanzanian progress along the developmental path did not have a significant impact on the extension of lived poverty, it made a large and significant contribution to reduce its severity. |
| 7. | Simplice A. Asongu Uchenna Efobi, Vanessa Tchamyou S Globalisation and governance in Africa: a critical contribution to the empirics Journal Article International Journal of Development Issues, 17 (1), pp. 2-17, 2018. Abstract | Links | BibTeX | Tags: Africa, Globalization, governance @article{Asongu,2018, title = {Globalisation and governance in Africa: a critical contribution to the empirics}, author = {Simplice A. Asongu, Uchenna Efobi, Vanessa S. Tchamyou}, url = {https://www.emeraldinsight.com/doi/pdfplus/10.1108/IJDI-04-2017-0038 }, doi = {10.1108/IJDI-04-2017-0038 }, year = {2018}, date = {2018-03-18}, journal = {International Journal of Development Issues}, volume = {17}, number = {1}, pages = {2-17}, abstract = {Purpose This study aims to assess the effect of globalisation on governance in 51 African countries for the period 1996-2011. Design/methodology/approach Ten bundled and unbundled governance indicators and four globalisation variables are used. The empirical evidence is based on Generalised Method of Moments. Findings Firstly, on political governance, while only social globalisation improves political stability, only economic globalisation does not increase voice and accountability and political governance. Secondly, with regard to economic governance: only economic globalisation significantly promotes regulation quality; social globalisation and general globalisation significantly advance government effectiveness; and economic globalisation and general globalisation significantly promote economic governance. Thirdly, with respect to institutional governance, while only social globalisation improves corruption-control, the effects of globalisation dynamics on the rule of law and institutional governance are not significant. Fourthly, the impacts of social globalisation and general globalisation are positive on general governance. Practical implications It follows that political governance is driven by voice and accountability compared to political stability; economic governance is promoted by both regulation quality and government effectiveness from specific globalisation angles; and globalisation does not improve institutional governance for the most part. Originality/value Governance variables are bundled and unbundled to reflect evolving conceptions and definitions of governance. Theoretical contributions and policy implications are discussed.}, keywords = {Africa, Globalization, governance}, pubstate = {published}, tppubtype = {article} } Purpose This study aims to assess the effect of globalisation on governance in 51 African countries for the period 1996-2011. Design/methodology/approach Ten bundled and unbundled governance indicators and four globalisation variables are used. The empirical evidence is based on Generalised Method of Moments. Findings Firstly, on political governance, while only social globalisation improves political stability, only economic globalisation does not increase voice and accountability and political governance. Secondly, with regard to economic governance: only economic globalisation significantly promotes regulation quality; social globalisation and general globalisation significantly advance government effectiveness; and economic globalisation and general globalisation significantly promote economic governance. Thirdly, with respect to institutional governance, while only social globalisation improves corruption-control, the effects of globalisation dynamics on the rule of law and institutional governance are not significant. Fourthly, the impacts of social globalisation and general globalisation are positive on general governance. Practical implications It follows that political governance is driven by voice and accountability compared to political stability; economic governance is promoted by both regulation quality and government effectiveness from specific globalisation angles; and globalisation does not improve institutional governance for the most part. Originality/value Governance variables are bundled and unbundled to reflect evolving conceptions and definitions of governance. Theoretical contributions and policy implications are discussed. |
| 8. | Simplice A. Asongu, Paul Acha-Any N The Murder Epidemic: A Global Comparative Study Journal Article International Criminal Justice Review, 2018. Abstract | Links | BibTeX | Tags: Homicides; Global evidence; Persistence; Latin America @article{Asongu,2018, title = {The Murder Epidemic: A Global Comparative Study}, author = {Simplice A. Asongu, Paul N. Acha-Any}, url = {http://journals.sagepub.com/doi/abs/10.1177/1057567718759584?journalCode=icja}, doi = {10.1177/1057567718759584 }, year = {2018}, date = {2018-03-04}, journal = {International Criminal Justice Review}, abstract = {We build on literature from policy and academic circles to assess whether Latin America is leading when it comes to persistence in homicides. The focus is on a global sample of 163 countries for the period 2010 to 2015. The empirical evidence is based on generalized method of moments. The following main finding is established. The region with the highest evidence of persistence in homicides is sub-Saharan Africa, followed by Latin America, the Middle East and North Africa (MENA), and then by Europe and Central Asia. In order to increase room for policy implications, the data set is decomposed into income levels, religious domination, landlockedness, and legal origins. From the conditioning information set, the following factors account for persistence in global homicides: crime, political instability, and weapons import positively affect homicides whereas the number of “security and police officers” has the opposite effect.}, keywords = {Homicides; Global evidence; Persistence; Latin America}, pubstate = {published}, tppubtype = {article} } We build on literature from policy and academic circles to assess whether Latin America is leading when it comes to persistence in homicides. The focus is on a global sample of 163 countries for the period 2010 to 2015. The empirical evidence is based on generalized method of moments. The following main finding is established. The region with the highest evidence of persistence in homicides is sub-Saharan Africa, followed by Latin America, the Middle East and North Africa (MENA), and then by Europe and Central Asia. In order to increase room for policy implications, the data set is decomposed into income levels, religious domination, landlockedness, and legal origins. From the conditioning information set, the following factors account for persistence in global homicides: crime, political instability, and weapons import positively affect homicides whereas the number of “security and police officers” has the opposite effect. |
| 9. | Simplice A. Asongu Sara Le Roux, Vanessa Tchamyou S Essential information sharing thresholds for reducing market power in financial access: a study of the African banking industry Journal Article Journal of Banking Regulation, 2018. Abstract | Links | BibTeX | Tags: Financial access; Market power; Information sharing @article{Asongu,2018, title = {Essential information sharing thresholds for reducing market power in financial access: a study of the African banking industry}, author = {Simplice A. Asongu, Sara Le Roux, Vanessa S. Tchamyou}, url = {https://link.springer.com/article/10.1057/s41261-018-0065-4}, doi = {10.1057/s41261-018-0065-4}, year = {2018}, date = {2018-02-26}, journal = {Journal of Banking Regulation}, abstract = {This study investigates the role of information sharing offices (public credit registries and private credit bureaus) in reducing market power for financial access in the African banking industry. The empirical evidence is based on a panel of 162 banks from 42 countries for the period 2001–2011. Three simultaneity-robust empirical strategies are employed, namely (1) Two Stage Least Squares with Fixed Effects in order to account for simultaneity and the unobserved heterogeneity, (2) Generalised Method of Moments to control for simultaneity and time-invariant omitted variables and (3) Instrumental Variable Quantile regressions to account for simultaneity and initial levels of financial access. In order to ensure that information sharing offices influence market power for loan price (quantity) to decrease (increase), public credit registries should have between 3.156% and 3.3% coverage, while private credit bureaus should have between 1.443 and 18.4% coverage. The established thresholds are cut-off points at which information sharing offices completely neutralise the negative effect of market power on financial access. The thresholds are contingent on the dimension (loan price versus loan quantity) and distribution (conditional mean versus conditional distribution) of financial access.}, keywords = {Financial access; Market power; Information sharing}, pubstate = {published}, tppubtype = {article} } This study investigates the role of information sharing offices (public credit registries and private credit bureaus) in reducing market power for financial access in the African banking industry. The empirical evidence is based on a panel of 162 banks from 42 countries for the period 2001–2011. Three simultaneity-robust empirical strategies are employed, namely (1) Two Stage Least Squares with Fixed Effects in order to account for simultaneity and the unobserved heterogeneity, (2) Generalised Method of Moments to control for simultaneity and time-invariant omitted variables and (3) Instrumental Variable Quantile regressions to account for simultaneity and initial levels of financial access. In order to ensure that information sharing offices influence market power for loan price (quantity) to decrease (increase), public credit registries should have between 3.156% and 3.3% coverage, while private credit bureaus should have between 1.443 and 18.4% coverage. The established thresholds are cut-off points at which information sharing offices completely neutralise the negative effect of market power on financial access. The thresholds are contingent on the dimension (loan price versus loan quantity) and distribution (conditional mean versus conditional distribution) of financial access. |
| 10. | Asongu S. A., Efobi Beecroft U R I Aid in Modulating the Impact of Terrorism on FDI: No Positive Thresholds, No Policy Journal Article Forum for Social Economics , 2018. Abstract | Links | BibTeX | Tags: FDI, Foreign aid, Quantile regression, terrorism @article{Asongu,2018, title = {Aid in Modulating the Impact of Terrorism on FDI: No Positive Thresholds, No Policy}, author = {Asongu, S. A., Efobi, U. R., Beecroft, I.}, url = {http://www.tandfonline.com/doi/full/10.1080/07360932.2018.1434676}, doi = {10.1080/07360932.2018.1434676}, year = {2018}, date = {2018-02-18}, journal = {Forum for Social Economics }, abstract = {We investigate how foreign aid dampens the effects of terrorism on FDI using interactive quantile regressions. The empirical evidence is based on 78 developing countries for the period 1984–2008. Bilateral and multilateral aid variables are used, while terrorism dynamics entail: domestic, unclear, transnational and total number of terrorist attacks. The main finding is that foreign aid cannot be used as a policy tool to effectively address a hypothetically negative effect of terrorism on FDI. The positive threshold we cannot establish is important for policy makers because it communicates a cut-off point at which foreign aid completely neutralizes the negative effect of terrorism on FDI. From the conditioning information set, we also establish for the most part that the effects of GDP growth, infrastructural development and trade openness are an increasing function of FDI. Policy implications are discussed.}, keywords = {FDI, Foreign aid, Quantile regression, terrorism}, pubstate = {published}, tppubtype = {article} } We investigate how foreign aid dampens the effects of terrorism on FDI using interactive quantile regressions. The empirical evidence is based on 78 developing countries for the period 1984–2008. Bilateral and multilateral aid variables are used, while terrorism dynamics entail: domestic, unclear, transnational and total number of terrorist attacks. The main finding is that foreign aid cannot be used as a policy tool to effectively address a hypothetically negative effect of terrorism on FDI. The positive threshold we cannot establish is important for policy makers because it communicates a cut-off point at which foreign aid completely neutralizes the negative effect of terrorism on FDI. From the conditioning information set, we also establish for the most part that the effects of GDP growth, infrastructural development and trade openness are an increasing function of FDI. Policy implications are discussed. |
