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The origins of terrorism: Cross-country estimates of socio-economic determinants of terrorism

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  • Freytag, Andreas
  • Krüger, Jens J.
  • Meierrieks, Daniel
  • Schneider, Friedrich

Abstract

Prior research has concluded that socio-economic development does not significantly affect terrorism. We take an alternative view. First, we note that a country's socio-economic circumstances affect terrorists' behavior through terrorism's opportunity costs. We argue that this reasoning also holds for the case of supreme value terrorism. Then, we run a series of negative binomial regressions for 110 countries between 1971 and 2007 to test the hypothesis that poor socio-economic development is conducive to terrorism. We find that socio-economic variables indeed matter to terrorism, contrary to other results. Our findings imply that countries can benefit from economic development and growth in terms of a reduction in terrorism.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 27 (2011)
Issue (Month): S1 ()
Pages: S5-S16

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Handle: RePEc:eee:poleco:v:27:y:2011:i:s1:p:s5-s16

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Terrorism; Development; Opportunity costs of violence; Negative binomial regression;

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References

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Citations

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Cited by:
  1. Michael Brzoska & Raphael Bossong & Eric van Um, 2011. "Security Economics in the European Context: Implications of the EUSECON Project," Economics of Security Working Paper Series 58, DIW Berlin, German Institute for Economic Research.
  2. repec:pdn:wpaper:49 is not listed on IDEAS
  3. Caruso, Raul & Schneider, Friedrich, 2011. "The socio-economic determinants of terrorism and political violence in Western Europe (1994–2007)," European Journal of Political Economy, Elsevier, vol. 27(S1), pages S37-S49.
  4. Sarah Brockhoff & Tim Krieger & Daniel Meierrieks, 2012. "Great Expectations and Hard Times - The (Nontrivial) Impact of Education on Domestic Terrorism," CESifo Working Paper Series 3817, CESifo Group Munich.
  5. Friedrich Schneider & Raul Caruso, 2011. "The (Hidden) Financial Flows of Terrorist and Transnational Crime Organizations: A Literature Review and Some Preliminary Empirical Results," Economics of Security Working Paper Series 52, DIW Berlin, German Institute for Economic Research.
  6. Muhammad, Shahbaz & Muhammad, Nasir Malik & Muhammad, Shahbaz Shabbir, 2011. "Does economic growth cause terrorism in Pakistan?," MPRA Paper 35101, University Library of Munich, Germany, revised 30 Nov 2011.
  7. Sarah Brockhoff & Tim Krieger & Daniel Meierrieks, 2012. "Looking Back on Anger: Explaining the Social Origins of Left-Wing and Nationalist-Separatist Terrorism in Western Europe, 1970-2007," Working Papers CIE 49, University of Paderborn, CIE Center for International Economics.
  8. Firat Bilgel & Burhan Can Karahasan, 2013. "“The Economic Costs of Separatist Terrorism in Turkey”," AQR Working Papers, University of Barcelona, Regional Quantitative Analysis Group 201314, University of Barcelona, Regional Quantitative Analysis Group, revised Nov 2013.
  9. Krisztina Kis-Katos & Helge Liebert & Guenther G. Schulze, 2012. "On the Heterogeneity of Terror," Discussion Paper Series, Department of International Economic Policy, University of Freiburg 19, Department of International Economic Policy, University of Freiburg, revised May 2012.
  10. Caruso, Raul, 2008. "Al Qaeda as a Tournament: Empirical Evidence," MPRA Paper 11693, University Library of Munich, Germany.
  11. Caruso, Raul & Schneider, Friedrich, 2009. "Al Qaeda and Jihadist Terrorism in the Light of Contest Theory, Empirical Evidence for the period 2004-2008," MPRA Paper 15856, University Library of Munich, Germany.
  12. Schneider, Friedrich, 2010. "The (Hidden) Financial Flows of Terrorist and Organized Crime Organizations: A Literature Review and Some Preliminary Empirical Results," IZA Discussion Papers 4860, Institute for the Study of Labor (IZA).
  13. repec:pdn:wpaper:47 is not listed on IDEAS
  14. Dorsett, Richard, 2013. "The effect of the Troubles on GDP in Northern Ireland," European Journal of Political Economy, Elsevier, vol. 29(C), pages 119-133.
  15. Shahbaz, Muhammad & Shabbir, Muhammad Shahbaz & Malik, Muhammad Nasir & Wolters, Mark Edward, 2013. "An analysis of a causal relationship between economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 35(C), pages 21-29.
  16. Shahbaz, Muhammad & Shabbir, Shahbaz Muhammad, 2011. "Is hike in inflation responsible for rise in terrorism in Pakistan?," MPRA Paper 31236, University Library of Munich, Germany, revised 29 May 2011.

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