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What causes terrorism?

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Author Info
Tim Krieger () (University of Paderborn)
Daniel Meierrieks (University of Paderborn)

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Abstract

Popular beliefs link terrorism to economic, political and social under- development. In this contribution, we comprehensively review the related, most relevant cross-country analyses to ascertain the true determinants of terrorism. The related theoretical underpinnings are presented and com- mon analytical and methodological objections are discussed. In general, we nd that terrorism is closely linked to political instability, sharp divides within the populace, country size and further demographic, institutional and international factors. Sound counter-terrorism policies should work on these prominent root causes of terrorism. Evidence is only marginal that economic performance, structural economic conditions, democrati- zation, education or religious aliation signi cantly interact with terror- ism. Thus, we are skeptical towards popular policy advice that focuses on poverty alleviation, a promotion of economic development, democratiza- tion, education or the like.

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File URL: http://groups.uni-paderborn.de/fiwi/RePEc/pdf/wpaper/WP12.pdf
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Publisher Info
Paper provided by University of Paderborn, CIE Center for International Economics in its series Working Papers with number 12.

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Length: 37 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:pdn:wpaper:12

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Web page: http://www.uni-paderborn.de/fakultaeten/wiwi/department4/cie/
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Related research
Keywords: Determinants of Terrorism Political Violence Counter-Terrorism Policies

Find related papers by JEL classification:
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
N40 - Economic History - - Government, War, Law, and Regulation - - - General, International, or Comparative

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  1. Bryan Caplan, 2006. "Terrorism: The relevance of the rational choice model," Public Choice, Springer, vol. 128(1), pages 91-107, July. [Downloadable!] (restricted)
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  3. Gassebner, Martin & Jong-A-Pin, Richard & Mierau, Jochen O., 2008. "Terrorism and electoral accountability: One strike, you're out!," Economics Letters, Elsevier, vol. 100(1), pages 126-129, July. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. William Shughart, 2006. "An analytical history of terrorism, 1945–2000," Public Choice, Springer, vol. 128(1), pages 7-39, July. [Downloadable!] (restricted)
  6. Tavares, Jose, 2004. "The open society assesses its enemies: shocks, disasters and terrorist attacks," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 1039-1070, July. [Downloadable!] (restricted)
  7. Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall. [Downloadable!] (restricted)
  8. Axel Dreher & Martin Gassebner & Lars-H. R. Siemers, 2007. "Does Terror Threaten Human Rights? Evidence from Panel Data," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  9. Jean-Paul Azam & Alexandra Delacroix, 2006. "Aid and the Delegated Fight Against Terrorism," Review of Development Economics, Blackwell Publishing, vol. 10(2), pages 330-344, 05. [Downloadable!] (restricted)
  10. Nitsch, Volker & Schumacher, Dieter, 2004. "Terrorism and international trade: an empirical investigation," European Journal of Political Economy, Elsevier, vol. 20(2), pages 423-433, June. [Downloadable!] (restricted)
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    Other versions:
  16. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Blackwell Publishing, vol. 21(1), pages 1-24, 02. [Downloadable!] (restricted)
    Other versions:
  17. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March. [Downloadable!]
  18. Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June. [Downloadable!] (restricted)
  19. Axel Dreher & Justina A.V. Fischer, 2008. "Decentralization as a disincentive for transnational terror? An empirical test," University of St. Gallen Department of Economics working paper series 2008 2008-01, Department of Economics, University of St. Gallen. [Downloadable!]
    Other versions:
  20. Blomberg, S. Brock & Hess, Gregory D. & Weerapana, Akila, 2004. "Economic conditions and terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 463-478, June. [Downloadable!] (restricted)
  21. Mirza, Daniel & Verdier, Thierry, 2008. "International trade, security and transnational terrorism: Theory and a survey of empirics," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 179-194, June. [Downloadable!] (restricted)
  22. Konstantinos Drakos & Andreas Gofas, 2006. "In Search Of The Average Transnational Terrorist Attack Venue," Defence and Peace Economics, Taylor and Francis Journals, vol. 17(2), pages 73-93, April. [Downloadable!] (restricted)
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  24. Enders, Walter & Sandler, Todd, 1996. "Terrorism and Foreign Direct Investment in Spain and Greece," Kyklos, Blackwell Publishing, vol. 49(3), pages 331-52.
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    Other versions:
  26. Todd Sandler, 2003. "Collective Action and Transnational Terrorism," The World Economy, Blackwell Publishing, vol. 26(6), pages 779-802, 06. [Downloadable!] (restricted)
  27. Loayza, Norman, 2004. "Comment on: "The open society assesses its enemies: shocks, disasters and terrorist attacks"," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 1071-1075, July. [Downloadable!] (restricted)
  28. Lee, Dwight R, 1988. "Free Riding and Paid Riding in the Fight against Terrorism," American Economic Review, American Economic Association, vol. 78(2), pages 22-26, May. [Downloadable!] (restricted)
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