Foreign aid as counterterrorism policy
AbstractThis paper presents a model where foreign aid bolsters a developing country's proactive counterterrorism efforts against a resident transnational terrorist group. In stage 1 of the game, the donor country allocates resources to terrorism-fighting tied aid, general assistance, and defensive actions at home. The recipient country then decides its proactive campaign against the common terrorist threat in stage 2, while the terrorists direct their attacks against the donor and recipient countries in stage 3. Terrorists' choices in the final stage provide a solid microfoundation for the terrorists' likelihood of success function. In stage 2, greater tied aid raises the recipient country's proactive measures and regime instability, while increased general aid reduces these proactive efforts and regime instability. In stage 1, a donor's homeland security decisions are interdependent with its aid package to a recipient country, hosting resident transnational terrorists. This interdependency and its implications have gone unrecognized to date. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 63 (2011)
Issue (Month): 3 (July)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
Other versions of this item:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Todd Sandler & Kevin Siqueira, 2006. "Global terrorism: deterrence versus pre-emption," Canadian Journal of Economics, Canadian Economics Association, vol. 39(4), pages 1370-1387, November.
- B. Curtis Eaton, 2004. "The elementary economics of social dilemmas," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 805-829, November.
- Subhayu Bandyopadhyay & Todd Sandler, 2011.
"The Interplay Between Preemptive and Defensive Counterterrorism Measures: A Two‐stage Game,"
London School of Economics and Political Science, vol. 78(311), pages 546-564, 07.
- Subhayu Bandyopadhyay & Todd Sandler, 2009. "The interplay between preemptive and defensive counterterrorism measures: a two-stage game," Working Papers 2008-034, Federal Reserve Bank of St. Louis.
- Sandler, Todd & Lapan, Harvey E., 1988. "The Calculus of Dissent: An Analysis of Terrorists' Choice of Targets," Staff General Research Papers 10818, Iowa State University, Department of Economics.
- Azam, Jean-Paul & Thelen, Véronique, 2008. "The Roles of Foreign Aid and Education in the War on Terror," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Konstantinos Drakos & Andreas Gofas, 2006. "In Search Of The Average Transnational Terrorist Attack Venue," Defence and Peace Economics, Taylor & Francis Journals, vol. 17(2), pages 73-93.
- Azam, Jean-Paul & Delacroix, Alexandra, 2006. "Aid and the Delegated Fight against Terrorism," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Jean-Paul Azam & Alexandra Delacroix, 2006.
"Aid and the Delegated Fight Against Terrorism,"
Review of Development Economics,
Wiley Blackwell, vol. 10(2), pages 330-344, 05.
- Jean-Paul Azam & Véronique Thelen, 2008.
"The roles of foreign aid and education in the war on terror,"
Springer, vol. 135(3), pages 375-397, June.
- 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.
- Khusrav Gaibulloev & Todd Sandler & Donggyu Sul, . "Reevaluating Terrorism and Economic Growth: Dynamic Panel Analysis and Cross-Sectional Dependence," Economics Working Papers 02-03/2013, School of Business and Management, American University of Sharjah.
- Azam, Jean-Paul & Thelen, Véronique, 2012.
"Where to Spend Foreign Aid to Counter Terrorism,"
TSE Working Papers
12-316, Toulouse School of Economics (TSE).
- Prabal Roy Chowdhury & Jaideep Roy, 2011. "Aid in times of terror," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 11-08, Indian Statistical Institute, New Delhi, India.
- Joseph Young & Michael Findley, 2011. "Can peace be purchased? A sectoral-level analysis of aid’s influence on transnational terrorism," Public Choice, Springer, vol. 149(3), pages 365-381, December.
- Axel Dreher & Andreas Fuchs, 2011. "Does terror increase aid?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 86, Courant Research Centre PEG.
- Subhayu Bandyopadhyay & E. Katarina Vermann, 2013. "Donor motives for foreign aid," Review, Federal Reserve Bank of St. Louis, issue July, pages 327-336.
- Subhayu Bandyopadhyay & Todd Sandler, 2011. "Immigration policy and counterterrorism," Working Papers 2011-012, Federal Reserve Bank of St. Louis.
- Claude Berrebi & Jordan Ostwald, 2011. "Earthquakes, hurricanes, and terrorism: do natural disasters incite terror?," Public Choice, Springer, vol. 149(3), pages 383-403, December.
- Axel Dreher & Andreas Fuchs, 2011. "Does terror increase aid?," Public Choice, Springer, vol. 149(3), pages 337-363, December.
- Navin Bapat, 2011. "Terrorism, democratization, and US foreign policy," Public Choice, Springer, vol. 149(3), pages 315-335, December.
- S. Blomberg & Khusrav Gaibulloev & Todd Sandler, 2011. "Terrorist group survival: ideology, tactics, and base of operations," Public Choice, Springer, vol. 149(3), pages 441-463, December.
- Todd Sandler, 2011. "The many faces of counterterrorism: an introduction," Public Choice, Springer, vol. 149(3), pages 225-234, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.