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Economic Globalization and Transnational Terrorism

Author

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  • Quan Li

    (Department of Political Science, Pennsylvania State University)

  • Drew Schaub

    (Department of Political Science, Pennsylvania State University)

Abstract

The effect of economic globalization on the number of transnational terrorist incidents within countries is analyzed statistically, using a sample of 112 countries from 1975 to 1997. Results show that trade, foreign direct investment (FDI), and portfolio investment have no direct positive effect on transnational terrorist incidents within countries and that economic developments of a country and its top trading partners reduce the number of terrorist incidents inside the country. To the extent that trade and FDI promote economic development, they have an indirect negative effect on transnational terrorism.

Suggested Citation

  • Quan Li & Drew Schaub, 2004. "Economic Globalization and Transnational Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(2), pages 230-258, April.
    • Handle: RePEc:sae:jocore:v:48:y:2004:i:2:p:230-258
    DOI: 10.1177/0022002703262869
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    References listed on IDEAS

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    Cited by:

    1. Michael Jetter & David Stadelmann, 2019. "Terror per Capita," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 286-304, July.
    2. Simplice Asongu & Jacinta Nwachukwu & Sara le Roux, 2019. "The role of inclusive development and military expenditure in modulating the effect of terrorism on governance," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(3), pages 681-709, August.
    3. Claude Berrebi & Jordan Ostwald, 2011. "Earthquakes, hurricanes, and terrorism: do natural disasters incite terror?," Public Choice, Springer, vol. 149(3), pages 383-403, December.
    4. James A. Piazza, 2013. "Regime Age and Terrorism: Are New Democracies Prone to Terrorism?," International Interactions, Taylor & Francis Journals, vol. 39(2), pages 246-263, April.
    5. Mirza, Daniel & Verdier, Thierry, 2006. "International trade, security, and transnational terrorism : theory and empirics," Policy Research Working Paper Series 4093, The World Bank.
    6. Tim Krieger & Daniel Meierrieks, 2010. "Terrorism in the Worlds of Welfare Capitalism," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(6), pages 902-939, December.
    7. Simplice Asongu & Vanessa Tchamyou & Ndemaze Asongu & Nina Tchamyou, 2017. "The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism," Journal of African Development, African Finance and Economic Association (AFEA), vol. 19(2), pages 77-91.
    8. Randall K. Filer & Dragana Stanišić, 2016. "The Effect of Terrorist Incidents on Capital Flows," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 502-513, May.
    9. Kis-Katos, Krisztina & Liebert, Helge & Schulze, Günther G., 2011. "On the origin of domestic and international terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 17-36.
    10. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2015. "The Economics Of Counterterrorism: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 131-157, February.
    11. Asongu, Simplice A. & Le Roux, Sara & Singh, Pritam, 2021. "Fighting terrorism in Africa: Complementarity between inclusive development, military expenditure and political stability," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 897-922.
    12. Zimmermann, Ekkart, 2011. "Globalization and terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 152-161.
    13. Scott Helfstein, 2014. "Social capital and terrorism," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(4), pages 363-380, August.
    14. Peter A.G. van Bergeijk, 2019. "Deglobalization 2.0," Books, Edward Elgar Publishing, number 18560.
    15. Asongu, Simplice & Tchamyou, Vanessa & Asongu, Ndemaze & Tchamyou, Nina, 2019. "Fighting terrorism in Africa when existing terrorism levels matter," MPRA Paper 102026, University Library of Munich, Germany.
    16. Jülide Yildirim & Nadir Öcal, 2013. "Analysing The Determinants Of Terrorism In Turkey Using Geographically Weighted Regression," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(3), pages 195-209, June.
    17. Ignacio Sánchez-Cuenca, 2014. "Why Do We Know So Little About Terrorism?," International Interactions, Taylor & Francis Journals, vol. 40(4), pages 590-601, August.
    18. Claude Berrebi & Jordan Ostwald, 2011. "Earthquakes, hurricanes, and terrorism: do natural disasters incite terror?," Public Choice, Springer, vol. 149(3), pages 383-403, December.
    19. Peter A.G. van Bergeijk, 2009. "Economic Diplomacy and the Geography of International Trade," Books, Edward Elgar Publishing, number 13518.
    20. Amar Iqbal Anwar & Mazhar Mughal, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working Papers hal-01885149, HAL.
    21. Friedrich Schneider, 2009. "Die Finanzströme von organisierter Kriminalität und Terrorismus: was wissen wir (nicht)?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 78(4), pages 73-87.
    22. Sacit Hadi Akdede & Jinyoung Hwang & Emre Can, 2008. "Cultural Diversity, Domestic Political Violence And Public Expenditures," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(3), pages 235-247.
    23. Robert E.B. Lucas (ed.), 2014. "International Handbook on Migration and Economic Development," Books, Edward Elgar Publishing, number 15465.
    24. Serfraz, Ayesha, 2017. "What is the effect of foreign direct investment inflows on economic growth in Pakistan? An empirical analysis in the light of religious sectarianism as catalyst for terrorism," ZÖSS-Discussion Papers 59, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    25. Maja Nikšić Radić, 2018. "Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis," Sustainability, MDPI, vol. 10(12), pages 1-17, December.

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