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Immigration policy and counterterrorism

Author

Listed:
  • Subhayu Bandyopadhyay
  • Todd Sandler

Abstract

A terrorist group, based in a developing (host) country, draws unskilled and skilled labor from the productive sector to conduct attacks at home and abroad. The host nation chooses proactive countermeasures, while accounting for the terrorist campaign. Moreover, a targeted developed nation decides its optimal mix of immigration quotas and defensive counterterrorism actions. Even though proactive measures in the host country may not curb terrorism at home, it may still be advantageous in terms of national income. Increases in the unskilled immigration quota augment terrorism against the developed country; increases in the skilled immigration quota may or may not raise terrorism against the developed country. When the developed country assumes a leadership role, it strategically augments its terrorism defenses and reduces its unskilled immigration quota to induce more proactive measures in the host country. The influence of leadership on the skilled immigration quota is more nuanced.

Suggested Citation

  • Subhayu Bandyopadhyay & Todd Sandler, 2011. "Immigration policy and counterterrorism," Working Papers 2011-012, Federal Reserve Bank of St. Louis.
  • Handle: RePEc:fip:fedlwp:2011-012
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    References listed on IDEAS

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    1. Subhayu Bandyopadhyay & Todd Sandler & Javed Younas, 2011. "Foreign direct investment, aid, and terrorism: an analysis of developing countries," Working Papers 2011-004, Federal Reserve Bank of St. Louis.
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    Cited by:

    1. 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).
    2. Axel Dreher & Martin Gassebner & Paul Schaudt, 2017. "The Effect of Migration on Terror - Made at Home or Imported from Abroad?," CESifo Working Paper Series 6441, CESifo Group Munich.
    3. Garcia-Alonso, Maria D.C. & Levine, Paul & Smith, Ron, 2016. "Military aid, direct intervention and counterterrorism," European Journal of Political Economy, Elsevier, vol. 44(C), pages 112-135.
    4. Abdulrahman ALRASSI, 2014. "Counterterrorism Efforts Of Saudi Arabia In Create Stability Of The World," SEA - Practical Application of Science, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 5, pages 117-122, November.
    5. Bandyopadhyay, Subhayu & Sandler, Todd, 2014. "The effects of terrorism on trade: a factor supply approach," Review, Federal Reserve Bank of St. Louis, vol. 96(3), pages 229-241.

    More about this item

    Keywords

    Emigration and immigration ; Terrorism;

    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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