IMPACT OF TERRORISM AND TOURISM ON NIGERIAN ECONOMY: THE MODERATING ROLE OF MILITARY EXPENDITURE USING THE ARDL APPROACH
This study examines the relationship between terrorism, tourism, and the Nigerian economy, with a focus on the moderating role of military expenditure using various statistical methods, including ARDL regression analysis spanning the period 1999 to 2024. The results show that terrorism has a significant negative impact on the Nigerian economy, with a notable decrease in tourism revenue. However, the study also finds that military expenditure can moderate this negative impact and help mitigate the effects of terrorism on the economy. The findings suggest that investing in military defense can be an effective strategy for safeguarding the Nigerian economy against the negative effects of terrorism. These findings have important implications for policy-makers and stakeholders in the Nigerian economy, providing insights into the potential benefits of increased military expenditure in the country. Overall, this study contributes to the existing literature on the relationship between terrorism, tourism, and economy, particularly in the context of Nigeria, and highlights the importance of strategic investments in military defense.
Keywords: Terrorism, Tourism, Military Expenditure, Nigerian Economy
