Analyzing the impacts of terrorism on innovation activity: A cross country empirical study

Title

Authors

Bisharat Hussain Chang
Department of Business Administration, Sukkur IBA University, Sukkur, Pakistan
Khalil Ahmed Channa
Department of Business Administration, Sukkur IBA University, Sukkur, Pakistan
Emmanuel Uche
Department of Economics, Abia State University, Uturu, Nigeria. School of Economics, College of Business and Economics, University of Johannesburg, South Africa.
Osamah Ibrahim Khalaf
Department of Solar, Al-Nahrain Research Center for Renewable Energy, Al-Nahrain University, Jadriya, Baghdad, Iraq
Waheed Ali
Department of Management Sciences SZABIST Larkana, Larkana, Pakistan

Abstract

Purpose: Many studies have analyzed the impact of terrorism on economic growth, but the terrorism-innovation nexus is very rare in academic literature. Hence, this study aims to theoretically and empirically examine the effect of terrorism on innovation activity.
Design/methodology/approach: We employ OLS, system GMM, and quantile regression on a panel dataset of 31 economies for 1990-2022.
Findings: The study’s findings indicate that terrorism negatively and significantly impacts innovation activity. Various robustness checks further support the results of this study. Moreover, the study findings also identify possible channels, such as domestic investment, foreign direct investment, and trade openness, through which terrorism affects innovation activity.
Originality/value: The outcomes of this study will not only provide policy recommendations for sustainable national innovation and offer a better understanding of the subject matter.

Keywords

Terrorism, innovation activity, Panel data, OLS, System GMM, Quantile regression

Classification-JEL

O31, O33, H65, F51, C33

Pages

124-161

https://doi.org/10.47654/v26y2022i5p124-161