IDEAS home Printed from https://ideas.repec.org/a/wly/soecon/v79y2013i4p849-863.html
   My bibliography  Save this article

Terrorism and the Invisible Hook

Author

Listed:
  • S. Brock Blomberg
  • Ricardo Fernholz
  • John-Clark Levin

Abstract

This article investigates and compares the root causes of transnational terrorism and piracy. In order to accomplish this, we construct a novel data set that catalogues terrorist activity and piracy over the years 1992–2008, paying particular attention to the Arabian Sea and Indian Ocean since 1991. These data are then merged with other information detailing the economic, political, and security posture of each organization during the same period so that we can examine the relationship between economic prosperity, security, terrorism, and piracy. The main conclusion is that terrorism is mostly unrelated to economic conditions, while piracy responds to both economic payoffs and military deterrents.

Suggested Citation

  • S. Brock Blomberg & Ricardo Fernholz & John-Clark Levin, 2013. "Terrorism and the Invisible Hook," Southern Economic Journal, John Wiley & Sons, vol. 79(4), pages 849-863, April.
    • Handle: RePEc:wly:soecon:v:79:y:2013:i:4:p:849-863
    DOI: 10.4284/0038-4038-2012.290
    as

    Download full text from publisher

    File URL: https://doi.org/10.4284/0038-4038-2012.290
    Download Restriction: no
    File URL: https://libkey.io/10.4284/0038-4038-2012.290?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Keefer,Philip & Loayza,Norman (ed.), 2008. "Terrorism, Economic Development, and Political Openness," Cambridge Books, Cambridge University Press, number 9780521887588.
    2. Khusrav Gaibulloev & Todd Sandier, 2011. "The Adverse Effect of Transnational and Domestic Terrorism on Growth in Africa," Journal of Peace Research, Peace Research Institute Oslo, vol. 48(3), pages 355-371, May.
    3. Martin Gassebner & Simon Luechinger, 2011. "Lock, stock, and barrel: a comprehensive assessment of the determinants of terror," Public Choice, Springer, vol. 149(3), pages 235-261, December.
    4. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    5. Drakos, Konstantinos, 2004. "Terrorism-induced structural shifts in financial risk: airline stocks in the aftermath of the September 11th terror attacks," European Journal of Political Economy, Elsevier, vol. 20(2), pages 435-446, June.
    6. Fielding, David, 2003. "Counting the Cost of the Intifada: Consumption, Saving and Political Instability in Israel," Public Choice, Springer, vol. 116(3-4), pages 297-312, September.
    7. Peter Kurrild-Klitgaard & Mogens Justesen & Robert Klemmensen, 2006. "The political economy of freedom, democracy and transnational terrorism," Public Choice, Springer, vol. 128(1), pages 289-315, July.
    8. Powell, Benjamin & Ford, Ryan & Nowrasteh, Alex, 2008. "Somalia after state collapse: Chaos or improvement?," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 657-670, September.
    9. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-921, September.
    10. Eckstein, Zvi & Tsiddon, Daniel, 2004. "Macroeconomic consequences of terror: theory and the case of Israel," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 971-1002, July.
    11. Richard B. Freeman, 1996. "Why Do So Many Young American Men Commit Crimes and What Might We Do about It?," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 25-42, Winter.
    12. S. Brock Blomberg & Gregory D. Hess, 2006. "How Much Does Violence Tax Trade?," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 599-612, November.
    13. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-1393, September.
    14. Leeson, Peter T., 2007. "Better off stateless: Somalia before and after government collapse," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 689-710, December.
    15. Khusrav Gaibulloev & Todd Sandler, 2009. "The Impact Of Terrorism And Conflicts On Growth In Asia," Economics and Politics, Wiley Blackwell, vol. 21(3), pages 359-383, November.
    16. Leeson, Peter T., 2010. "Pirational choice: The economics of infamous pirate practices," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 497-510, December.
    17. Blomberg, S. Brock & Broussard, Nzinga H. & Hess, Gregory D., 2011. "New wine in old wineskins? Growth, terrorism and the resource curse in sub-Saharan Africa," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 50-63.
    18. Peter T. Leeson, 2007. "An-arrgh-chy: The Law and Economics of Pirate Organization," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 1049-1094, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. S. Brock Blomberg & Ricardo Fernholz & John-Clark Levin, 2013. "Symposium - Terrorism and the Invisible Hook," Southern Economic Journal, Southern Economic Association, vol. 79(4), pages 849-863, April.
    2. S. Brock Blomberg & Ricardo Fernholz & John-Clark Levin, 2013. "Symposium - Terrorism and the Invisible Hook," Southern Economic Journal, John Wiley & Sons, vol. 79(4), pages 849-863, April.
    3. Subhayu Bandyopadhyay & Todd Sandler & Javed Younas, 2016. "Trade and Terrorism: A Disaggregated Approach," Working Papers 2016-1, Federal Reserve Bank of St. Louis.
    4. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 1-24, February.
    5. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part II)," Discussion Papers of DIW Berlin 1050, DIW Berlin, German Institute for Economic Research.
    6. William F. Shughart, 2011. "Terrorism in Rational Choice Perspective," Chapters, in: Christopher J. Coyne & Rachel L. Mathers (ed.), The Handbook on the Political Economy of War, chapter 8, Edward Elgar Publishing.
    7. Khusrav Gaibulloev & Todd Sandler, 2023. "Common myths of terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 271-301, April.
    8. Kis-Katos, Krisztina & Liebert, Helge & Schulze, Günther G., 2014. "On the heterogeneity of terror," European Economic Review, Elsevier, vol. 68(C), pages 116-136.
    9. Peter Egger & Martin Gassebner, 2015. "International terrorism as a trade impediment?," Oxford Economic Papers, Oxford University Press, vol. 67(1), pages 42-62.
    10. Peter Leeson, 2014. "Pirates, prisoners, and preliterates: anarchic context and the private enforcement of law," European Journal of Law and Economics, Springer, vol. 37(3), pages 365-379, June.
    11. Freytag, Andreas & Krüger, Jens J. & Meierrieks, Daniel & Schneider, Friedrich, 2011. "The origins of terrorism: Cross-country estimates of socio-economic determinants of terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 5-16.
    12. Pınar Derin-Güre, 2014. "Development, immigration and terrorism," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 15, pages 425-462, Edward Elgar Publishing.
    13. Khusrav Gaibulloev & Todd Sandler & Donggyu Sul, "undated". "Reevaluating Terrorism and Economic Growth: Dynamic Panel Analysis and Cross-Sectional Dependence," Economics Working Papers 02-03/2013, School of Business Administration, American University of Sharjah.
    14. Amar Iqbal Anwar & Mazhar Mughal, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working papers of CATT hal-01885149, HAL.
    15. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055.
    16. Victor Asal & Aaron M. Hoffman, 2016. "Media effects: Do terrorist organizations launch foreign attacks in response to levels of press freedom or press attention?," Conflict Management and Peace Science, Peace Science Society (International), vol. 33(4), pages 381-399, September.
    17. Chuku Chuku & Isip Ima-Abasi & Abang Dominic, 2017. "Working Paper 284 - Growth and Fiscal Consequences of Terrorism in Nigeria," Working Paper Series 2410, African Development Bank.
    18. Bassil Charbel, 2013. "Macroeconomic Consequences of War and Terrorism in Lebanon," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 415-429, December.
    19. Yasir Khan & Cai ShuKai & Taimoor Hassan & Jawed Kootwal & Muhammad Nisar Khan, 2021. "The links between renewable energy, fossil energy, terrorism, economic growth and trade openness: the case of Pakistan," SN Business & Economics, Springer, vol. 1(9), pages 1-25, September.
    20. Amar Iqbal Anwar & Mazhar Mughal, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working Papers hal-01885149, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:soecon:v:79:y:2013:i:4:p:849-863. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2325-8012 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.