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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

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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Bibliographic 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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Keywords: Terrorism; Decentralization; Democracy; Governance quality; Government effectiveness;

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References

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Cited by:
  1. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part II)," Discussion Papers of DIW Berlin 1050, DIW Berlin, German Institute for Economic Research.

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