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The Nonlinear Relationship between Terrorism and Poverty

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  • Walter Enders
  • Gary A. Hoover

Abstract

In spite of the common wisdom that poverty breeds terrorism, econometric tests usually find that terrorism is influenced by population and various measures of democratic freedom, but not per capita GDP. Unlike previous studies, we use a data set containing separate measures of domestic and transnational terrorism and estimate models allowing for a nonlinear relationship between terrorism and poverty. When we account for the nonlinearities in the data and distinguish between the two types of terrorist events, we find that poverty has as a very strong influence on domestic terrorism and a small, but significant, effect on transnational terrorism.

Suggested Citation

  • Walter Enders & Gary A. Hoover, 2012. "The Nonlinear Relationship between Terrorism and Poverty," American Economic Review, American Economic Association, vol. 102(3), pages 267-272, May.
  • Handle: RePEc:aea:aecrev:v:102:y:2012:i:3:p:267-72
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.102.3.267
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    References listed on IDEAS

    as
    1. Walter Enders & Todd Sandler & Khusrav Gaibulloev, 2011. "Domestic Versus Transnational Terrorism: Data, Decomposition, and Dynamics," Journal of Peace Research, Peace Research Institute Oslo, vol. 48(3), pages 319-337, May.
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    Cited by:

    1. Tausch, Arno, 2016. "Occidentalism, terrorism, and the Shari’a state: new multivariate perspectives on Islamism based on international survey data," MPRA Paper 69498, University Library of Munich, Germany.
    2. Andra Filote & Niklas Potrafke & Heinrich Ursprung, 2016. "Suicide attacks and religious cleavages," Public Choice, Springer, vol. 166(1), pages 3-28, January.
    3. repec:eee:pubeco:v:153:y:2017:i:c:p:32-48 is not listed on IDEAS
    4. Brodeur, Abel, 2015. "Terrorism and Employment: Evidence from Successful and Failed Terror Attacks," IZA Discussion Papers 9526, Institute for the Study of Labor (IZA).
    5. Jetter, Michael, 2016. "Peace, Terrorism, or Civil Conflict? Understanding the Decision of an Opposition Group," IZA Discussion Papers 9996, Institute for the Study of Labor (IZA).
    6. Axel Dreher & Merle Kreibaum, 2016. "Weapons of choice," Journal of Peace Research, Peace Research Institute Oslo, vol. 53(4), pages 539-553, July.
    7. Miaari, Sami & Zussman, Asaf & Zussman, Noam, 2014. "Employment restrictions and political violence in the Israeli–Palestinian conflict," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 24-44.
    8. Adelaja, Adesoji, 2016. "Agriculture, Inclusive Growth and National Stability:," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235909, Agricultural and Applied Economics Association.
    9. Ghulam Akhmat & Khalid Zaman & Tan Shukui & Faiza Sajjad, 2014. "Exploring the root causes of terrorism in South Asia: everybody should be concerned," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3065-3079, November.
    10. Michael Jetter & David Stadelmann, 2017. "Terror per capita," CREMA Working Paper Series 2017-01, Center for Research in Economics, Management and the Arts (CREMA).
    11. Adelaja, Adesoji O., 2016. "Agriculture, Inclusive Growth And National Stability:," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 242359, Agricultural and Applied Economics Association.
    12. Malik, Zahra & Zaman, Khalid, 2013. "Macroeconomic consequences of terrorism in Pakistan," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 1103-1123.
    13. Michael Jetter & Bei Li, 2017. "The Political Economy of Opposition Groups: Peace, Terrorism, or Civil Conflict," CESifo Working Paper Series 6747, CESifo Group Munich.
    14. Boehmer Charles & Daube Mark, 2013. "The Curvilinear Effects of Economic Development on Domestic Terrorism," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 359-368, December.
    15. Nauro F. Campos & Martin Gassebner, 2013. "International Terrorism, Domestic Political Instability, and the Escalation Effect," Economics and Politics, Wiley Blackwell, vol. 25(1), pages 27-47, March.
    16. repec:eee:reveco:v:49:y:2017:i:c:p:313-326 is not listed on IDEAS
    17. Jetter, Michael, 2014. "Terrorism and the Media," IZA Discussion Papers 8497, Institute for the Study of Labor (IZA).
    18. Ezcurra, Roberto & Palacios, David, 2016. "Terrorism and spatial disparities: Does interregional inequality matter?," European Journal of Political Economy, Elsevier, vol. 42(C), pages 60-74.

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