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Immigration from a terror-prone nation: Destination nation's optimal immigration and counterterrorism policies

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  • Bandyopadhyay, Subhayu
  • Gaibulloev, Khusrav
  • Sandler, Todd

Abstract

The article presents a two-country model in which a destination country chooses its immigration quota and proactive counterterrorism measures in response to immigration from a terror-plagued country. A novel feature is to tie the optimizing quota and proactive choice to the consequences on the labor market. After the destination country fixes its two policies, immigrants decide between supplying labor or conducting terrorist attacks, which helps to determine equilibrium labor supply and wages. The analysis accounts for the marginal disutility of lost rights/freedoms stemming from stricter counterterror measures as well as the inherent radicalization of migrants. Comparative statics involve changes to those two parameters. For example, an enhanced importance attached to lost rights is shown to limit immigration quotas and counterterrorism actions. In contrast, increased source-country radicalization reduces immigration quotas but has an ambiguous effect on optimal proactive measures. Extensions involve defensive policies and destination-country citizens’ radicalization.

Suggested Citation

  • Bandyopadhyay, Subhayu & Gaibulloev, Khusrav & Sandler, Todd, 2025. "Immigration from a terror-prone nation: Destination nation's optimal immigration and counterterrorism policies," Economic Modelling, Elsevier, vol. 143(C).
    • Handle: RePEc:eee:ecmode:v:143:y:2025:i:c:s0264999324003298
    DOI: 10.1016/j.econmod.2024.106972
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    References listed on IDEAS

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    1. Marc Helbling & Daniel Meierrieks, 2020. "Transnational terrorism and restrictive immigration policies," Journal of Peace Research, Peace Research Institute Oslo, vol. 57(4), pages 564-580, July.
    2. Helbling, Marc & Meierrieks, Daniel, 2022. "Terrorism and Migration: An Overview," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 60(2), pages 977-996.
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    More about this item

    Keywords

    Immigration from a terror-prone country; Interplay between immigration quotas and proactive counterterrorism; Counterterrorism influence on rights/freedoms; Source-country radicalization; Labor-market equilibrium;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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