IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v143y2025ics0264999324003298.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999324003298
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econmod.2024.106972?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
    2. Walter Enders & Paan Jindapon, 2010. "Network Externalities and the Structure of Terror Networks," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(2), pages 262-280, April.
    3. Kjell Hausken, 2012. "The economics of terrorism against two targets," Applied Economics Letters, Taylor & Francis Journals, vol. 19(12), pages 1135-1138, August.
    4. Khusrav Gaibulloev & Todd Sandler, 2019. "What We Have Learned about Terrorism since 9/11," Journal of Economic Literature, American Economic Association, vol. 57(2), pages 275-328, June.
    5. Nabin, Munirul H. & Chowdhury, Mohammad Tarequl H. & Bhattacharya, Sukanto & Sgro, Pasquale M., 2022. "Terrorism and uneven economic development," Economic Modelling, Elsevier, vol. 113(C).
    6. Vicki Bier & Santiago Oliveros & Larry Samuelson, 2007. "Choosing What to Protect: Strategic Defensive Allocation against an Unknown Attacker," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(4), pages 563-587, August.
    7. 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.
    8. Bandyopadhyay, Subhayu & Sandler, Todd, 2014. "Immigration policy and counterterrorism," Journal of Public Economics, Elsevier, vol. 110(C), pages 112-123.
    9. Daniel Milton & Megan Spencer & Michael Findley, 2013. "Radicalism of the Hopeless: Refugee Flows and Transnational Terrorism," International Interactions, Taylor & Francis Journals, vol. 39(5), pages 621-645, November.
    10. Gaibulloev, Khusrav & Piazza, James A. & Sandler, Todd, 2017. "Regime Types and Terrorism," International Organization, Cambridge University Press, vol. 71(3), pages 491-522, July.
    11. Helbling, Marc & Meierrieks, Daniel, 2020. "Transnational terrorism and restrictive immigration policies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 57(4), pages 564-580.
    12. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October.
    13. Tobias Böhmelt & Vincenzo Bove & Enzo Nussio, 2020. "Can Terrorism Abroad Influence Migration Attitudes at Home?," American Journal of Political Science, John Wiley & Sons, vol. 64(3), pages 437-451, July.
    14. Hausken, Kjell & Bier, Vicki M., 2011. "Defending against multiple different attackers," European Journal of Operational Research, Elsevier, vol. 211(2), pages 370-384, June.
    15. Ethier, Wilfred J, 1986. "Illegal Immigration: The Host-Country Problem," American Economic Review, American Economic Association, vol. 76(1), pages 56-71, March.
    16. Axel Dreher & Martin Gassebner & Paul Schaudt, 2020. "The effect of migration on terror: Made at home or imported from abroad?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1703-1744, November.
    17. Bond, Eric W. & Chen, Tain-Jy, 1987. "The welfare effects of illegal immigration," Journal of International Economics, Elsevier, vol. 23(3-4), pages 315-328, November.
    18. Enders,Walter & Sandler,Todd, 2012. "The Political Economy of Terrorism," Cambridge Books, Cambridge University Press, number 9780521181006, June.
    19. 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.
    20. Daniel G. Arce & Todd Sandler, 2010. "Terrorist Spectaculars: Backlash Attacks and the Focus of Intelligence," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(2), pages 354-373, April.
    21. Seung-Whan Choi, 2021. "Immigration Policy and Terrorism: An Empirical Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 32(3), pages 271-295, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khusrav Gaibulloev & Todd Sandler, 2023. "Common myths of terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 271-301, April.
    2. Bandyopadhyay, Subhayu & Sandler, Todd, 2023. "Voluntary participation in a terror group and counterterrorism policy," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 500-513.
    3. 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.
    4. Subhayu Bandyopadhyay & Todd Sandler, 2023. "The Trade-Offs of Counterterrorism Policies," Review, Federal Reserve Bank of St. Louis, vol. 105(3), pages 177-197, July.
    5. Böhmelt, Tobias & Bove, Vincenzo, 2017. "How Migration Policies Moderate the Diffusion of Terrorism," CAGE Online Working Paper Series 349, Competitive Advantage in the Global Economy (CAGE).
    6. Krieger, Tim, 2020. "Migration and terrorism," Discussion Paper Series 2020-06, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    7. Bandyopadhyay, Subhayu & Sandler, Todd, 2021. "Counterterrorism policy: Spillovers, regime solidity, and corner solutions," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 811-827.
    8. Bandyopadhyay, Subhayu & Sandler, Todd, 2023. "Politically influenced counterterrorism policy and welfare efficiency," European Journal of Political Economy, Elsevier, vol. 76(C).
    9. Wukki Kim & Todd Sandler, 2020. "Middle East and North Africa: Terrorism and Conflicts," Global Policy, London School of Economics and Political Science, vol. 11(4), pages 424-438, September.
    10. Adam, Antonis & Tsavou, Evi, 2022. "Do natural disasters fuel terrorism? The role of state capacity," Economic Modelling, Elsevier, vol. 115(C).
    11. Subhayu Bandyopadhyay & Todd Sandler, 2020. "Counterterrorism Policy: Spillovers, Regime Stability, and Corner Solutions," Working Papers 2020-015, Federal Reserve Bank of St. Louis.
    12. Khusrav Gaibulloev & Todd Sandler, 2019. "Terrorism and affinity of nations," Public Choice, Springer, vol. 178(3), pages 329-347, March.
    13. 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.
    14. Hunt, Kyle & Zhuang, Jun, 2024. "A review of attacker-defender games: Current state and paths forward," European Journal of Operational Research, Elsevier, vol. 313(2), pages 401-417.
    15. 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.
    16. Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 869-924, December.
    17. Todd Sandler, 2019. "Affinity, arming, consequences, and perceptions: an introduction," Public Choice, Springer, vol. 178(3), pages 319-327, March.
    18. Tobias Böhmelt & Vincenzo Bove, 2020. "Does cultural proximity contain terrorism diffusion?," Journal of Peace Research, Peace Research Institute Oslo, vol. 57(2), pages 251-264, March.
    19. Meierrieks, Daniel, 2025. "The effect of terrorism on economic inequality in democracies and non-democracies," European Journal of Political Economy, Elsevier, vol. 86(C).
    20. Gaibulloev, Khusrav & Hou, Dongfang & Sandler, Todd, 2020. "How do the factors determining terrorist groups’ longevity differ from those affecting their success?," European Journal of Political Economy, Elsevier, vol. 65(C).

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:143:y:2025:i:c:s0264999324003298. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.