Macro-Economic Consequences of Terrorism and Anti-Terrorism Expenditure on Economic Performance in Nigeria, 1980-2014

John Olucoris Aiyedogbon, Benjamin Kumai Gugong, Sarah Olanrewaju Anyanwu

Abstract


ABSTRACT: The worldwide manifestation of terrorism has been evident in Africa, including Nigeria. With particular reference to Nigeria, the phenomenon has found expression in the emergence of Boko Haram insurgency. Since its advent, the sectarian insurgency has wrecked immense havoc in the country, especially by using explosives and firearms with gruesome fatal consequences. This paper focuses on macro-economic consequences of terrorism and counter terrorism expenditure on economic performance in Nigeria, over the period 1980–2014. The paper argued that due to attacks occasioned by terrorism and other criminal activities in Nigeria, many firms have either closed down or relocated to other countries. The objective of the study is to examine the impact of counter terrorism expenditure of the government and terrorist attacks on economic performance in Nigeria. The study finds that while impact of government expenditure in security on economic growth is positive and significant, the relationship between the later and terrorist attacks is negative. The paper recommended that the nation defense forces should be adequately equipped to urgently deal with the menace of insecurity in Nigeria.

KEY WORD: Terrorism; Counter Terrorism Expenditure; Terrorist Attacks; Economic Performance; Nation-State of Nigeria. 

RESUME: Konsekuensi Makro-Ekonomi tentang Terorisme dan Pengeluaran Kontra Terorisme terhadap Kinerja Ekonomi di Nigeria, 1980-2014”. Manifestasi global tentang terorisme telah terbukti di Afrika, termasuk Nigeria. Dengan merujuk khusus kepada Nigeria, fenomena itu telah diekspresikan dengan munculnya pemberontakan Boko Haram. Sejak kemunculannya, pemberontakan sektarian tersebut telah membuat malapetaka besar di negara Nigeria, terutama karena menggunakan bahan peledak dan senjata api dengan konsekuensi yang fatal mengerikan. Makalah ini memfokuskan pada konsekuensi makro-ekonomi tentang terorisme dan pengeluaran kontra terorisme terhadap kinerja ekonomi di Nigeria, selama periode 1980-2014. Makalah ini menyatakan bahwa karena serangan yang disebabkan oleh terorisme dan kegiatan kriminal lainnya di Nigeria, banyak perusahaan telah ditutup atau dipindahkan ke negara-negara lain. Tujuan penelitian ini adalah untuk menguji dampak serangan terorisme dan biaya untuk menangani terorisme dari pemerintah terhadap kinerja ekonomi di Nigeria. Penelitian ini menemukan bahwa sementara dampak pengeluaran dari pemerintah dalam keamanan terhadap pertumbuhan ekonomi itu bersifat positif dan signifikan, namun hubungannya kemudian dengan serangan teroris adalah negatif. Makalah ini merekomendasikan bahwa kekuatan pertahanan nasional harus dilengkapi secara memadai untuk segera menangani ancaman ketidakamanan di Nigeria.

KATA KUNCI: Terorisme; Pengeluaran Kontra Terorisme; Serangan Teroris; Kinerja Ekonomi; Negara-Bangsa Nigeria.

    

About the Authors: John Olucoris Aiyedogbon, Ph.D. is a Senior Lecturer at the Department of Economics, Faculty of Humanities, Social, and Management Sciences BU (Bingham University), Karu, Abuja, Nigeria. Benjamin Kumai Gugong, Ph.D. is a Senior Lecturer at the Department of Accounting, Faculty of Social and Management Sciences KSU (Kaduna State University), Nigeria. Sarah Olanrewaju Anyanwu, Ph.D. is a Professor of Development Economics and Head of the Department of Economics UA (University of Abuja) and also a Visiting Professor to other Universities in Nigeria. Corresponding authors are: johnaiyedogbon@gmail.com, bkgugong@yahoo.com, and sarahanyanwu@yahoo.com

How to cite this article? Aiyedogbon, John Olucoris, Benjamin Kumai Gugong & Sarah Olanrewaju Anyanwu. (2016). “Macro-Economic Consequences of Terrorism and Anti-Terrorism Expenditure on Economic Performance in Nigeria, 1980-2014” in SOSIOHUMANIKA: Jurnal Pendidikan Sains Sosial dan Kemanusiaan, Vol.9(1) May, pp.1-10. Bandung, Indonesia: Minda Masagi Press and UPI Bandung, ISSN 1979-0112.

Chronicle of the article: Accepted (February 19, 2016); Revised (March 20, 2016); and Published (May 20, 2016).


Keywords


Terrorism; Counter Terrorism Expenditure; Terrorist Attacks; Economic Performance; Nation-State of Nigeria.

Full Text:

PDF

References


Abadie, A. & J. Gardeazabal. (2008). “Terrorism and the World Economy” in European Economic Review, 52(1), pp.1-27.

Awake, J. (2008). “When Terrorism will End?” in Journal of Social Studies, 20, pp.1-6.

Barga, T. (2012). “Towards a Theology of Peace: A Panacea to Terrorism and Violence” in Journal of Social Studies, 24, pp.19-24.

Blomberg, S.B., G.D. Hess & A. Orphanides. (2004). “The Macro-Economic Consequences of Terrorism” in Journal of Monetary Economics, 51, pp.1007-1032.

Blomberg, S.B., N. Broussard & G. Hess. (2011). “New Wine in Old Wineskins? Growth, Terrorism, and the Resource Curse in Sub-Saharan Africa” in European Journal of Political Economy, 27, pp.50-63.

Blood, Matthew. (2015). “Nigeria’s Critical Juncture: Boko Haram, Buhari, and the Future of the Fourth Republic” in Small Wars Journal. Available online also at: file:///C:/Users/acer/Downloads/Small%20Wars [accessed in Abuja, Nigeria: 10 December 2015].

“Boko Haram: The Emerging Jihadist Threat in West Africa”. Available online at: http://www.adl.org/assets/pdf/combating-hate/boko-haram-jihadist-threat-west-africa-2013-1-11-v1.pdf [accessed in Abuja, Nigeria: 10 December 2015].

“Chibok School Girls Kidnapping”. Available online at: https://en.wikipedia.org/wiki/Chibok_schoolgirls_kidnapping [accessed in Abuja, Nigeria: 10 December 2015].

Chuku, C., D. Abang & I. Isip. (2014). “Macro-Economic Consequences of Terrorism and Anti-Terrorism Expenditure in Nigeria”. Available online also at: http://www.google.com.ng [accessed in Abuja, Nigeria: 10 December 2015].

Collier, P. (1999). “On the Economic Consequences of Civil War” in Oxford Economic Papers, 51(1), pp.168-183.

Collier, P., A. Hoeffler & C. Pattillo. (2002). Africa’s Exodus: Capital Flight and the Brain Drain as Portfolio Decisions. Washington, D.C.: World Bank.

“Definitions of Terrorism”. Available online at: https://en.wikipedia.org/wiki/Definitions_of_terrorism [accessed in Abuja, Nigeria: March 2, 2016].

Eme, Okechukwu Innocent & Jide Ibietan. (2012). “The Cost of Boko Haram Activities in Nigeria” in Arabian Journal of Business and Management Review, Vol.2, No.2, September [OMAN Chapter], pp.10-32. Available online also at: http://eprints.covenantuniversity.edu.ng/3754/1/Eme%26Ibietan.pdf [accessed in Abuja, Nigeria: 10 December 2015].

Emmanuelar, Imasuen. (2015). “Insurgency and Humanitarian Crises in Northern Nigeria: The Case of Boko Haram” in Academic Journals: African Journal of Political Science and International Relations, Vol.9(7), July, pp.284-296. Available online also at: http://www.academicjournals.org/journal/AJPSIR/article-full-text-pdf/9324F3C53778 [accessed in Abuja, Nigeria: 10 December 2015].

Gaibulloev, K. & T. Sandler. (2008). “Growth Consequences of Terrorism in Western Europe” in Kyklos, 6(3), pp.411-424.

Gassebner, M. & S. Luechinger. (2011). “Lock Stock and Barrel: A Comprehensive Assessment of Determinants of Terror” in Public Choice, 149, pp.235-261.

“Global Terrorism Index: Capturing the Impact of Terrorism from 2002-2011”. Available online at: http://www.academia.edu/23487639/GLOBAL_TERRORISM_INDEX [accessed in Abuja, Nigeria: 10 December 2015].

Hussain, A. (2003). “Terrorism, Development and Democracy: The Case of Pakistan” in Terrorism in South Asia. New Delhi, India: Shipra Publications.

ITSR [International Terrorism and Security Research]. (1984). “Terrorism”. Available online at: http://www.terrorism-research.com/ [accessed in Abuja, Nigeria: March 2, 2016].

Lum, Cynthia, Leslie W. Kennedy & Alison Sherley. (2010). “Strategies Related to the Prevention, Detection, Management, and Response to Terrorism: A Campbell Systematic Review”. Available online at: file:///C:/Users/acer/Downloads/1010_P.pdf [accessed in Abuja, Nigeria: March 2, 2016].

Malik, Z. & K. Zaman. (2013). “Macro-Economic Consequences of Terrorism” in Pakistan Journal of Policy Modelling, 35, pp.1103-1123.

Mehmood, S. (2014). “Terrorism and the Economy: Evidence from Pakistan” in Defence and Peace Economics, 25(5), pp.509-534.

Morley, Nicole. (2015). “Here’s the Terrorist Group More Deadly than Islamic State” in Metro. Available online also at: http://metro.co.uk/2015/11/18/heres-the-terrorist-group-more-deadly-than-islamic-state-5509836/#ixzz4Bhu2cpxE [accessed in Abuja, Nigeria: March 2, 2016].

Obene, W.R. (2012). “Home-Grown Terrorism: An Emerging Challenge to Nigeria’s National Security”. Paper presented at the Armed Forces Command and Staff College in Jaji, Kaduna, Nigeria, on March.

Okoli, A. & P. Iortyer. (2014). “Terrorism and Humanitarian Crisis in Nigeria: Insights from Boko Haram Insurgency” in Global Journal of Human Social Science, 14(1), pp.39-49.

Omale, D.J.O. (2013). “Terrorism and Counter Terrorism in Nigeria: Theoretical Paradigms and Lessons for Public Policy” in Canadian Social Science, 9(3), pp.96-103.

Setty, Sudha. (2011). “What’s in a Name? How Nations Define Terrorism Ten Years After 9/11”. Available online also at: https://www.law.upenn.edu/live/files/139-setty33upajintll12011pdf [accessed in Abuja, Nigeria: March 2, 2016].

Shahbaz, M. et al. (2013). “An Analysis of a Causal Relationship between Growth and Terrorism in Pakistan” in Economic Modelling, 35, pp.21-29.

“The Effect of Terrorism on the Survival of Banks in North West Nigeria, 2003 to 2013”. Available online at: http://www.legacytechnologies.biz/entries/general/business-administration-project-the-effect-of-terrorism-on-the-survival-of-banks-in-north-west-nigeria-2003-to-2013-n6000- [accessed in Abuja, Nigeria: March 2, 2016].

“The National Security Strategy of the United States of America”. Available online at: http://www.state.gov/documents/organization/63562.pdf [accessed in Abuja, Nigeria: March 2, 2016].




DOI: https://doi.org/10.2121/sosiohumanika.v9i1.653

Refbacks

  • There are currently no refbacks.




Lisensi Creative Commons

SOSIOHUMANIKA: Jurnal Pendidikan Sains Sosial dan Kemanusiaan is published by Minda Masagi Press. This work is licensed under a Creative Commons Attribution-Sharealike 4.0.

Stats Counter