Aid,Terrorism, and Foreign Direct Investment: Empirical Insight Conditioned on Corruption Control

ABSTRACT

This paper checks the effect of foreign aid on terrorism–foreign direct investment (FDI) nexus, while considering the extent of domestic corruption control (CC). The empirical evidence is based on a sample of 78 developing countries. The following findings were established: the negative effect of terrorism on FDI is apparent only in countries with higher levels of CC; foreign aid dampens the negative effect of terrorism on FDI only in countries with high level of CC. Also, the result is mixed when foreign aid is subdivided into its bilateral and multilateral components. While our findings are in accordance with the stance that bilateral aid is effective in reducing the adverse effect of terrorism on FDI, we find that multilateral aid also decreases the adverse effect of other forms of terrorism that can neither be classified as domestic or transnational. Policy implications are discussed in the paper.     

Female Access and Rights to Land,and Rural Non‐farm Entrepreneurship in Four African Countries

This paper examines the relationship between female access to land, rights to such land, and engagement in non‐farm entrepreneurship in rural Africa. We used data from the four countries (Ethiopia, Nigeria, Tanzania and Malawi) that were featured in the Living Standards Measurement Study—Integrated Surveys in Agriculture dataset for the period 2013–15. To estimate the relationship, we compute the marginal effect from the logistic regression, while controlling for other important covariates that explain non‐farm activities at the individual/household level. We find that overall, women's access to land and rights to such land significantly explain their likelihood to engage in non‐farm enterprises. However, this relationship is not seen across the sampled countries. In Nigeria, for instance, we find that though the relationship is positive, it was not significant. While for Ethiopia, Tanzania and Malawi, we find a positive and significant relationship. We explain our result based on two important perspectives. The policy implications of our result are included in the paper.