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The (Hidden) Financial Flows of Terrorist and Organized Crime Organizations: A Literature Review and Some Preliminary Empirical Results

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  • Schneider, Friedrich

    () (University of Linz)

Abstract

The financial means of international terror and organized crime organizations are analysed. First, some short remarks about the organization of international terror organizations are made. Second and in a much more detailed way a literature review is provided about the financing of terrorist and organized crime organizations, their sources and the various methods they use. Third, an attempt is made to estimate the financial means of terror organizations with the help of a latent estimation approach (MIMIC procedure). The figures show that Al Qaeda and other terror organizations have sufficient financial means. Fourth, some remarks are made about the negative effects of terror on the economy in highly developed countries and some strategies are presented to combat (the financing) of terrorism.

Suggested Citation

  • Schneider, Friedrich, 2010. "The (Hidden) Financial Flows of Terrorist and Organized Crime Organizations: A Literature Review and Some Preliminary Empirical Results," IZA Discussion Papers 4860, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4860
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. How much illicit crime money exists?
      by Ariel Goldring in Free Market Mojo on 2010-05-10 22:51:18
    2. The (Hidden) Financial Flows of Terrorist and Organized Crime Organizations
      by Ariel Goldring in Free Market Mojo on 2010-05-04 12:20:51

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    Cited by:

    1. Camelia Popa & Liviu Uzlau & Corina-Maria Ene, 2012. "The Financial Support And The Administrative Needs Of Terrorist Operations," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-20.

    More about this item

    Keywords

    organized crime; terrorist organizations; Hawala banking; money laundering; financial flows of terrorist organizations; financial flows of organized crime; kinds of terrorist financing;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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