A bad turn deserves another: linkages between terrorism, capital flight and industrialisation

This study examines how the association between terrorism and capital flight affects process of industrialisation in 36 African countries. The empirical evidence is based on Generalised Method Moments (GMM) Quantile Regressions (QR). GMM-oriented findings show that interacts with to negatively affect ‘domestic terrorism’- ‘total terrorism’-oriented regressions. With QR approach, GMM results are confirmed exclusively 25th 50th quantiles, regressions pertaining domestic terrorism, unclear total terrorism. It follows negative effect from investigated interaction driven by bottom quantiles distribution. confirms existing literature developed countries more likely limit externalities compared their developing counterparts. Hence, consequence a decreasing function industrialisation.