@workingpaper{Asongu2015b_28,
title = {Trade, Aid and Terror},
author = {Oasis Kodila-Tedika Simplice A. Asongu},
editor = {African 2015 Governance and Development Institute WP/15/028},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Trade-Aid-and-Terror.pdf},
year = {2015},
date = {2015-06-01},
abstract = {This study assesses the role of foreign aid in reducing the hypothetically negative
impact of terrorism on trade using a panel of 78 developing countries with data for the period
1984-2008. The empirical evidence is based on interactive GMM estimations with forward
orthogonal deviations. Bilateral, multilateral and total aid dynamics are employed whereas
terrorism entails: domestic, transnational, unclear and total terrorism dynamics. The
following findings have been established. First, while bilateral aid has no significant effect on
trade, multilateral and total aids have positive impacts. Second total terrorism, domestic
terrorism and transnational terrorism increase trade with increasing order of magnitude. Third,
corresponding negative marginal effects on the interaction between foreign aid (bilateral and
total) and terrorism display thresholds that are within range. Unexpected signs are clarified
and policy implications discussed.},
keywords = {Foreign Aid; Terrorism; Development, Trade Openness},
pubstate = {published},
tppubtype = {workingpaper}
}