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Aid and the Delegated Fight Against Terrorism

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Author Info
Jean-Paul Azam
Alexandra Delacroix
Abstract

A positive empirical relationship is found between the level of foreign aid received by a country and the number of terrorist attacks originating from it. A simple model is used to explain it, where the donor delegates some actions against terrorism to the aid-recipient government. Aid is endogenous in an econometric equation explaining participation in terrorist events, as expected from the model, and an attacks-supply curve in which aid has a negative impact is presented at the end. Copyright © 2006 The Authors; Journal compilation © 2006 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2006.00321.x
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Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 10 (2006)
Issue (Month): 2 (05)
Pages: 330-344
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Handle: RePEc:bla:rdevec:v:10:y:2006:i:2:p:330-344

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  1. Jean-Paul Azam & Véronique Thelen, 2008. "The roles of foreign aid and education in the war on terror," Public Choice, Springer, vol. 135(3), pages 375-397, June. [Downloadable!] (restricted)
  2. Tim Krieger & Daniel Meierrieks, 2008. "What causes terrorism?," Working Papers 12, University of Paderborn, CIE Center for International Economics. [Downloadable!]
  3. Subhayu Bandyopadhyay & Todd Sandler & Javed Younas, 2009. "Foreign aid as counterterrorism policy," Working Papers 2009-021, Federal Reserve Bank of St. Louis. [Downloadable!]
  4. Azam, Jean-Paul & Thelen, Véronique, 2007. "The Roles of Foreign Aid and Education in the War on Terror," IDEI Working Papers 449, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  5. Azam, Jean-Paul & Berlinschi, Ruxanda, 2008. "The Aid-Migration of Trade-Off," IDEI Working Papers 538, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  6. Nauro F. Campos & Martin Gassebner, 2009. "International Terrorism, Political Instability and the Escalation Effect," KOF Working papers 09-220, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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