Decentralization as a disincentive for transnational terror? System stability versus government efficiency: an empirical test

Axel Dreher and Justina A. V. Fischer

No 41, TWI Research Paper Series from Thurgauer Wirtschaftsinstitut, Universität Konstanz

Abstract: Using panel data for a maximum of 109 countries over the years 1976-2000, we empirically analyze the impact of decentralization on the occurrence of transnational terror. Our results show that expenditure decentralization robustly reduces the number of terror events in a country, while political decentralization has no impact. The effects of decentralization do not transmit through government efficiency and effectiveness, in line with the system stability hypothesis of Frey and Luechinger (2004).

Keywords: Terrorism; Decentralization; Democracy; Governance quality; Government effectiveness (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:twi:respas:0041

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