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Decentralization as a disincentive for transnational terror? System stability versus government efficiency: an empirical test

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Author Info
Axel Dreher
Justina Fischer

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Abstract

Using panel data for a maximum of 109 countries over the years 1976-2000, we empirically analyze the impact of decentralization on the occurrence of transnational terror. Our results show that expenditure decentralization robustly reduces the number of terror events in a country, while political decentralization has no impact. The effects of decentralization do not transmit through government efficiency and effectiveness, in line with the system stability hypothesis of Frey and Luechinger (2004).

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Publisher Info
Paper provided by Thurgauer Wirtschaftsinstitut, Universität Konstanz in its series TWI Research Paper Series with number 41.

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Date of creation: 2008
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Handle: RePEc:twi:respas:0041

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Related research
Keywords: Terrorism; Decentralization; Democracy; Governance quality; Government effectiveness;

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