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Foreign Aid Versus Military Intervention in the War on Terror

Author

Listed:
  • Jean-Paul Azam

    (ARQADE - Atelier de Recherche Quantitative Appliquée au Développement Economique - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse)

  • Véronique Thelen

    (ARQADE - Atelier de Recherche Quantitative Appliquée au Développement Economique - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse)

Abstract

This article presents a theoretical framework and some empirical results showing that the level of foreign aid received reduces the supply of terrorist attacks from recipient countries, while U.S. military interventions are liable to increase this supply. Due account is taken of endogeneity problems in producing these results. They suggest that Western democracies, which are the main targets of terrorist attacks, should invest more funds in foreign aid, with a special emphasis on supporting education, and use military interventions more sparingly.

Suggested Citation

  • Jean-Paul Azam & Véronique Thelen, 2009. "Foreign Aid Versus Military Intervention in the War on Terror," Post-Print hal-02402815, HAL.
  • Handle: RePEc:hal:journl:hal-02402815
    DOI: 10.1177/0022002709356051
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    References listed on IDEAS

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    Cited by:

    1. Uchenna Efobi & Simplice Asongu & Ibukun Beecroft, 2018. "Aid, Terrorism, and Foreign Direct Investment: Empirical Insight Conditioned on Corruption Control," International Economic Journal, Taylor & Francis Journals, vol. 32(4), pages 610-630, October.
    2. Simplice A. Asongu & Stella-Maris I. Orim & Rexon T. Nting, 2019. "Terrorism and Social Media: Global Evidence," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 22(3), pages 208-228, July.
    3. Nimonka Bayale & Brigitte Kanga Kouassi, 2022. "The Devil is in the Details: On the Robust Determinants of Development Aid in G5 Sahel Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(4), pages 646-680, December.
    4. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2015. "The Economics Of Counterterrorism: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 131-157, February.
    5. Krieger, Tim & Brockhoff, Sarah & Meierrieks, Daniel, 2012. "Great Expectations and Hard Times The (Nontrivial) Impact of Education on Domestic Terrorism," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62083, Verein für Socialpolitik / German Economic Association.
    6. Seung-Whan Choi & James A. Piazza, 2017. "Foreign Military Interventions and Suicide Attacks," Journal of Conflict Resolution, Peace Science Society (International), vol. 61(2), pages 271-297, February.
    7. 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.
    8. Khusrav Gaibulloev & Todd Sandler, 2023. "Common myths of terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 271-301, April.
    9. Simplice Asongu & John Ssozi, 2017. "When is Foreign Aid Effective in Fighting Terrorism? Threshold Evidence," International Economic Journal, Taylor & Francis Journals, vol. 31(3), pages 370-389, July.
    10. Jean-Paul Azam & Véronique Thelen, 2014. "The Geo-Politics of Foreign Aid and Transnational Terrorism," Revue d’économie du développement, De Boeck Université, vol. 22(HS01), pages 263-288.
    11. Azam, Jean-Paul & Thelen, Véronique, 2014. "Did the Aid Boom Pacify Sub-Saharan Africa?: Ex-Post Evaluation Using a Near-Identification Approach," TSE Working Papers 14-544, Toulouse School of Economics (TSE), revised Jun 2019.
    12. Redlin, Margarete & Gries, Thomas & Meierrieks, Daniel, 2014. "Oppressive Governments, US Closeness, and Anti-US Terrorism," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100588, Verein für Socialpolitik / German Economic Association.
    13. Todd Sandler, 2011. "The many faces of counterterrorism: an introduction," Public Choice, Springer, vol. 149(3), pages 225-234, December.
    14. Lis, Piotr, 2018. "The impact of armed conflict and terrorism on foreign aid: A sector-level analysis," World Development, Elsevier, vol. 110(C), pages 283-294.
    15. Simplice A. Asongu, 2019. "The persistence of global terrorism," Working Papers of the African Governance and Development Institute. 19/053, African Governance and Development Institute..
    16. Vincenzo Bove & Leandro Elia & Petros G. Sekeris, 2014. "US Security Strategy and the Gains from Bilateral Trade," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 863-885, November.
    17. Paul Bezerra & Alex Braithwaite, 2016. "Locating foreign aid commitments in response to political violence," Public Choice, Springer, vol. 169(3), pages 333-355, December.
    18. Bove, Vincenzo & Sekeris, Petros, 2011. "Economic Determinants of Third-Party Intervention in Civil Conflict," NEPS Working Papers 4/2011, Network of European Peace Scientists.
    19. Wukki Kim & Todd Sandler, 2021. "Foreign aid and terrorist groups: incidents, ideology, and survival," Public Choice, Springer, vol. 189(1), pages 139-160, October.
    20. Khusrav Gaibulloev & Todd Sandler, 2019. "Terrorism and affinity of nations," Public Choice, Springer, vol. 178(3), pages 329-347, March.
    21. Subhayu Bandyopadhyay & Todd Sandler, 2023. "The Trade-Offs of Counterterrorism Policies," Review, Federal Reserve Bank of St. Louis, vol. 105(3), pages 177-197, July.
    22. Colin Hannigan, 2019. "Toward a holistic networks approach to strategic third-party intervention: A literature review," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 22(3), pages 277-292, September.
    23. Ken Yahagi, 2023. "Sanctions and rewards with a motivated agent," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2057-2067, June.
    24. Seung-Whan Choi & Patrick James, 2016. "Why Does the United States Intervene Abroad? Democracy, Human Rights Violations, and Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 60(5), pages 899-926, August.
    25. Raechelle Mascarenhas & Todd Sandler, 2014. "Remittances and terrorism: A global analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(4), pages 331-347, August.

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