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Bribes and Bombs: The Effect of Corruption on Terrorism

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  • MEIERRIEKS, DANIEL
  • AUER, DANIEL

Abstract

We leverage plausibly exogenous variation in regional exposure to corruption to provide causal estimates of the impact of local political corruption on terrorist activity for a sample of 175 countries between 1970 and 2018. We find that higher levels of corruption lead to more terrorism. This result is robust to a variety of empirical modifications, including various ways in which we probe the validity of our instrumental variables approach. We also show that corruption adversely affects the provision of public goods and undermines counter-terrorism capacity. Thus, our empirical findings are consistent with predictions from a game-theoretical representation of terrorism, according to which corruption makes terrorism relatively more attractive compared to peaceful contestation, while also decreasing the costs of organizing and carrying out terrorist attacks.

Suggested Citation

  • Meierrieks, Daniel & Auer, Daniel, 2025. "Bribes and Bombs: The Effect of Corruption on Terrorism," American Political Science Review, Cambridge University Press, vol. 119(2), pages 670-686, May.
    • Handle: RePEc:cup:apsrev:v:119:y:2025:i:2:p:670-686_9
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    Cited by:

    1. is not listed on IDEAS
    2. Boese-Schlosser, Vanessa & Eberhardt, Markus, 2025. "Democracy in decline: The economic implications of democratic collapse," Discussion Papers, Research Unit: Transformations of Democracy SP V 2025-502, WZB Berlin Social Science Center.
    3. Auer, Daniel & Meierrieks, Daniel, 2024. "Bestechung und Bomben: Korruptionsbekämpfung dient auch der nationalen Sicherheit," WZB-Mitteilungen: Quartalsheft für Sozialforschung, WZB Berlin Social Science Center, issue 186 (4/24, pages 48-50.
    4. Meierrieks, Daniel, 2025. "The effect of terrorism on economic inequality in democracies and non-democracies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 86, pages 1-18.

    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy

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