Advanced Search
MyIDEAS: Login to save this paper or follow this series

Terrorism From Within: An Economic Model of Terrorism

Contents:

Author Info

  • S. Brock Blomberg

    (Wellesley College)

  • Gregory D. Hess

    (Claremont McKenna College)

  • Akila Weerapana

    (Wellesley College)

Abstract

In this paper, we develop and explore the implications of an economic model that links the incidence of terrorism in a country to the economic circumstances facing that country. We briefly sketch out a theory, in the spirit of Tornell (1998), that describes terrorist activities as being initiated by groups that are unhappy with the current economic status quo, yet unable to bring about drastic political and institutional changes that can improve their situation. Such groups with limited access to opportunity may find it rational to engage in terrorist activities. The result is then a pattern of reduced economic activity and increased terrorism. In contrast, an alternative environment can emerge where access to economic resources is more abundant and terrorism is reduced. Our empirical results are consistent with the theory. We find that for democratic, high income countries, economic contractions (i.e. recessions) can provide the spark for increased probabilities of terrorist activities.

Download Info

If 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.
File URL: http://www.claremontmckenna.edu/rdschool/papers/2002-14.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Claremont Colleges in its series Claremont Colleges Working Papers with number 2002-14.

as in new window
Length:
Date of creation: Aug 2002
Date of revision:
Handle: RePEc:clm:clmeco:2002-14

Contact details of provider:
Postal: 500 E. 9th Street, Claremont, CA 91711
Phone: (909) 607-3041
Fax: (909) 621-8249
Web page: http://www.claremontmckenna.edu/rdschool/papers/
More information through EDIRC

Related research

Keywords: Growth; Terrorism; Political Economy;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Enders, Walter & Sandler, Todd & Parise, Gerald F, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Wiley Blackwell, vol. 45(4), pages 531-54.
  2. Lapan, Harvey E & Sandler, Todd, 1988. "To Bargain or Not to Bargain: That Is the Question," American Economic Review, American Economic Association, vol. 78(2), pages 16-21, May.
  3. Tornell, A., 1998. "Reform from Within," Papers, Harvard - Institute for International Development 650, Harvard - Institute for International Development.
  4. Hess, Gregory D & Orphanides, Athanasios, 1995. "War Politics: An Economic, Rational-Voter Framework," American Economic Review, American Economic Association, vol. 85(4), pages 828-46, September.
  5. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-21, September.
  6. Lapan, Harvey E. & Sandler, Todd, 1993. "Terrorism and Signalling," Staff General Research Papers 10808, Iowa State University, Department of Economics.
  7. Todd Sandler & H�vard Hegre, 2002. "Economic analysis of civil wars," Defence and Peace Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(6), pages 429-433.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. 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.
  2. Donato Masciandaro, 2008. "Offshore financial centres: the political economy of regulation," European Journal of Law and Economics, Springer, Springer, vol. 26(3), pages 307-340, December.
  3. Tim Krieger & Daniel Meierrieks, 2008. "What causes terrorism?," Working Papers CIE 12, University of Paderborn, CIE Center for International Economics.
  4. Edna Carolina Sastoque Ramírez & Mario García Molina, 2007. "Pasiones e intereses: las causas de la guerra civil de 1876-1877 en el Estado Soberano de Santander," DOCUMENTOS DE TRABAJO UEC, UNIVERSIDAD EXTERNADO DE COLOMBIA 003962, UNIVERSIDAD EXTERNADO DE COLOMBIA.
  5. repec:pdn:wpaper:12 is not listed on IDEAS
  6. Tilman Brück & Bengt-Arne Wickström, 2004. "The Economic Consequences of Terror: A Brief Survey," HiCN Working Papers 03, Households in Conflict Network.
  7. Shahbaz, Muhammad, 2013. "Linkages between inflation, economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 32(C), pages 496-506.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:clm:clmeco:2002-14. See general 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: ().

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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