The Origins of Terrorism - Cross-Country Estimates on Socio-Economic Determinants of Terrorism

Andreas Freytag (), Jens J. Krüger (), Daniel Meierrieks () and Friedrich Georg Schneider ()
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Jens J. Krüger: Technical University Darmstadt, Department of Law and Economics, Germany
Daniel Meierrieks: University of Paderborn, Department of Economics, Germany

No 2009-009, Jena Economic Research Papers in Economics from Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek

Abstract: To expand our knowledge about an appropriate anti-terror strategy, it is indispensable to assess the underlying causes of terror. We examine social and economic conditions in the country of origin of terrorist attacks, claiming that low opportunity costs of terror, e.g. approximated as slow growth and poor institutions raise the propensity of terror and the willingness in the population to support terror. Using a mixed effects Poisson regression model, we are able to show that unfortunate socio-economic conditions in a country are suitable to reduce the opportunity cost for potential terrorists and increase the likelihood of terrorist attacks originating from a specific country. Interestingly, this effect is relevant after a certain level of development has been reached. We therefore distinguish between the OECD, Europe and Islamic countries.

Keywords: terror attacks; openness; discrete choice analysis; institutions (search for similar items in EconPapers)
JEL-codes: P16 F15 C25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm
Date: 2009-02-01
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Working Paper: The Origins of Terrorism - Cross-Country Estimates on Socio-Economic Determinants of Terrorism (2009)
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