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Decentralization as a disincentive for transnational terror? An empirical test

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  • Axel Dreher

    ()

  • Justina A.V. 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. Taking account of the potential simultaneity between terror and decentralization, our results show that expenditure decentralization robustly reduces the number of terror events in a country, while political decentralization has no impact.

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Bibliographic Info

Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2008 with number 2008-01.

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Length: 31 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:usg:dp2008:2008-01

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Keywords: Terrorism; Decentralization; Democracy;

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Citations

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Cited by:
  1. Falch, Torberg & Fischer, Justina AV, 2010. "Public sector decentralization and school performance: International evidence," MPRA Paper 20331, University Library of Munich, Germany.
  2. Campos, Nauro F. & Gassebner, Martin, 2009. "International Terrorism, Political Instability and the Escalation Effect," CEPR Discussion Papers 7226, C.E.P.R. Discussion Papers.
  3. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part II)," CESifo Working Paper Series 3012, CESifo Group Munich.

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