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Remittances and terrorism: A global analysis

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  • Raechelle Mascarenhas
  • Todd Sandler

Abstract

This paper is the first global investigation of the relationship between remittances and terrorism. To discern this relationship, we draw terrorism event data from the Global Terrorism Database and International Terrorism: Attributes of Terrorism Events. When a host of standard terrorism controls is employed, lagged remittances as a share of gross domestic product have a positive and significant impact on both domestic and transnational terrorist attacks. For the venue country's viewpoint, lagged remittances have a greater marginal impact on domestic than on transnational terrorism. However, when we investigate remittances to the home country of the perpetrator, lagged remittances have the greatest marginal impact on transnational terrorism. Throughout our investigation, standard terrorism controls perform according to our priors and those of the literature, lending credence to the isolation of the impact of remittances. We also account for endogeneity concerns.

Suggested Citation

  • Raechelle Mascarenhas & Todd Sandler, 2014. "Remittances and terrorism: A global analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(4), pages 331-347, August.
  • Handle: RePEc:taf:defpea:v:25:y:2014:i:4:p:331-347
    DOI: 10.1080/10242694.2013.824676
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    References listed on IDEAS

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    Cited by:

    1. Michael Batu, 2016. "Can Remittances Buy Peace?," Working Papers 1610, University of Windsor, Department of Economics.
    2. repec:ags:afjecr:264468 is not listed on IDEAS
    3. Economou Athina & Kollias Christos, 2015. "Terrorism and Political Self-Placement in European Union Countries," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(2), pages 217-238, April.
    4. Raza, Syed Ali & Shah, Nida & Khan, Waqas Ahmed, 2017. "Do Workers’ Remittances Increase Terrorism? Evidence from South Asian Countries," MPRA Paper 86745, University Library of Munich, Germany, revised 2017.

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