Does Terrorism Have Economic Roots?
AbstractThis paper investigates the roots of international, domestic, and separatist terrorism using a new, extensive, multi-country panel data set obtained from MIPT (Memorial Institute of Prevention of Terrorism). I augment the MIPT data by recording the target country and the terrorist's country of origin. I also classify each terrorist incident as international, domestic or separatist. International terrorism refers to terrorism committed by foreign nationals. Domestic terrorism refers to terrorism committed by domestic nationals. Separatist terrorism is committed by domestic nationals engaged in separatist causes. Using a panel data analysis with country fixed effects, I find striking results at considerable odds with the literature. Whereas the previous literature finds that terrorism is unrelated to economic conditions, I find that the richer the country, the fewer the terrorist attacks committed abroad by the country's nationals. Similarly, I find that when a country is richer, the country's nationals commit fewer terrorist attacks at home. I build an entirely new data set with regional GDP of separatist regions and find that the higher the GDP of the separatist region, the fewer the terrorist attacks committed by native separatists.
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 InfoPaper provided by Boston University - Department of Economics in its series Boston University - Department of Economics - Working Papers Series with number wp2009-001.
Date of creation: May 2009
Date of revision:
Economics of Terrorism; Count Data; International Terrorism; Domestic Terrorism; Separatist Terrorism;
Find related papers by JEL classification:
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-10 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Courtney Sullivan).
If references are entirely missing, you can add them using this form.