Taxing impact of terrorism on global economic openness of developed and developing countries

Saeed, Abubakr and Ding, Yuhua and Hammoudeh, Shawkat and Ahmad, Ishtiaq (2018) Taxing impact of terrorism on global economic openness of developed and developing countries. Acta Oeconomica, 68 (3). pp. 311-335. ISSN 0001-6373

Preview

Text 032.2018.68.3.1.pdf Download (178kB) | Preview

Abstract

This study examines the relationship between terrorism and economic openness that takes into account both the number and intensity of terrorist incidents and the impact of government military expenditures on trade-GDP and foreign direct investment-GDP ratios for both developed and developing countries. It uses the dynamic GMM method to account for endogeneity in the variables. Deaths caused by terrorism have a significant negative impact on FDI flows, and the number of terrorist attacks is also found to be significant in hampering the countries’ ability to trade with other nations. The study also demonstrates that the developing countries exhibit almost similar results to our main analysis. The developed countries exhibit a negative impact of terrorism, but the regression results are not significant.

Actions (login required)

Edit Item