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The Geo-Politics of Foreign Aid and Transnational Terrorism

Author

Listed:
  • Jean-Paul Azam
  • Véronique Thelen

Abstract

This paper reviews some findings by Azam and Thelen (2008, 2010, 2012) that illustrate how foreign aid is used by rich countries to purchase the services of recipient governments with a view to protect or promote their economic and political interests. In particular, these findings show that foreign aid is effective at controlling the number of transnational terrorist attacks coming from the recipient countries, while it is not so regarding the number of attacks in the host countries. In contrast, they show that military intervention, as captured by the presence of US soldiers on the ground is counter?productive, as it increases the number of terrorist attacks both by source country and by host country. JEL Classification : D74, F35, H11, I21, O19.

Suggested Citation

  • Jean-Paul Azam & Véronique Thelen, 2014. "The Geo-Politics of Foreign Aid and Transnational Terrorism," Revue d’économie du développement, De Boeck Université, vol. 22(HS01), pages 263-288.
    • Handle: RePEc:cai:edddbu:edd_hs01_0263
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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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