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On the Origin of Domestic and International Terrorism

Author

Listed:
  • Krisztina Kis-Katos
  • Helge Liebert
  • Günther G. Schulze

    () (Department of International Economic Policy, University of Freiburg)

Abstract

We analyze the determinants of the origin of domestic and international terrorism in a large panel data set of 159 countries spanning from 1970 to 2007. We show that terror increases with GDP per capita, a higher POLITY score measuring a more open and competitive political system and experiences of domestic conflict, anarchy and regime transitions. Our evidence thus contradicts the notion that terrorism is rooted in economic deprivation or that strongly autocratic regimes breed more terrorists. Rather we show that weak or failing states are a hotbed for terrorism. Lastly, we show that domestic terror is determined by similar forces as international terror.

Suggested Citation

  • Krisztina Kis-Katos & Helge Liebert & Günther G. Schulze, 2010. "On the Origin of Domestic and International Terrorism," Discussion Paper Series 12, Department of International Economic Policy, University of Freiburg, revised May 2010.
  • Handle: RePEc:fre:wpaper:12
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    References listed on IDEAS

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    Keywords

    terrorism; origin of terrorism; negative binomial panel;

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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