Terrorism and Local Economic Development

Sundar Ponnusamy and Marco Faravelli ()
Additional contact information
Sundar Ponnusamy: DCentre for Health Economics, Monash University,
Marco Faravelli: School of Economics, University of Queensland, Brisbane, Australia

No 664, Discussion Papers Series from University of Queensland, School of Economics

Abstract: Scientific We study the local economic effects of terror incidents at a sub-national level for a global set of developed and developing countries. Using night lights as a proxy for local economic activity, we identify that one additional fatality per attack results in a drop of 0.14 percent in economic development, on average. The effects are observed for up to a 15-kilometer radius from the incident location. The attacks targeted at business infrastructure and the police/military bases have the most detrimental effects. The group of countries from the Middle-Eastern and Northern African region, South Asia, and Sub-Saharan African regions suffer the most. Using individual-level data from four countries as a case study, we show that terrorism affects individual well-being and lowers the desire to have additional children among women. It is also evident that terrorism is detrimental to child health in the treated districts. Findings survive a battery of robustness tests.

Keywords: Terrorism; Economic Development; Spatial Analysis (search for similar items in EconPapers)
JEL-codes: F52 H56 J13 O10 (search for similar items in EconPapers)
Date: 2023-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://economics.uq.edu.au/files/47922/664.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qld:uq2004:664

Access Statistics for this paper

More papers in Discussion Papers Series from University of Queensland, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by SOE IT ().