Terrorism Activities as Threat to Political Instability and Its Effect on Economic Development in Sub-Saharan Africa: An Empirical Study Using Panel Multiple Regression and Panel Generalized Linear Model

Author(s)

Winfred Okoe Addy , Haris Muhammad , Yao HONGXING , Felix Kwame Nyarko , Dominique Jean Jacques Beraud ,

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Volume 9 - February 2020 (02)

Abstract

The study assesses the effect of terrorism which causes political instability on economic development in Sub-Saharan Africa. The study uses panel data of 33 Sub-Saharan countries from 2000 to 2014. The study used panel data methodologies such as multiple regression methods and generalized linear models. The study concluded that political instability directly affects economic development and any potential rise in political turmoil in any Sub-Saharan African country will lead to a negative effect on their economic development. In conclusion, the act of terrorism and violence causing political instability hampers the peace and tranquility of a country and also retard growth as well as development. Therefore, it will be paramount and pertinent for governments to ensure peace prevails in their respective countries to promote social and economic development.

Keywords

Political Instability; Foreign Direct Investment; Economic Development; Corruption; Rule of Law

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