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The socio-economic determinants of terrorism and political violence in Western Europe (1994–2007)

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  • Caruso, Raul
  • Schneider, Friedrich

Abstract

The main objective of this paper is to empirically investigate the socio-economic causes of terrorism and political violence in a sample of 12 countries in Western Europe. First, we show that in western European countries the classical economic argument of opportunity cost is confirmed. That is, the larger is the set of current economic opportunities for individuals the lower is the likelihood or the willingness for them to be involved in a terrorist activity. Second, expected future economic growth seems to be associated with an increase in current terrorist activities. Eventually, our results also show that terrorist brutality (measured in people killed) is positively associated with real GDP per capita.

Suggested Citation

  • Caruso, Raul & Schneider, Friedrich, 2011. "The socio-economic determinants of terrorism and political violence in Western Europe (1994–2007)," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 37-49.
    • Handle: RePEc:eee:poleco:v:27:y:2011:i:s1:p:s37-s49
    DOI: 10.1016/j.ejpoleco.2011.02.003
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    More about this item

    Keywords

    Economic determinants of terrorism; Political violence; Economic deprivation; Immiserizing modernization; Brutality of violence;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

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