Decentralization as a Disincentive for Transnational Terror? An Empirical Test

KOF Working Papers / KOF Swiss Economic Institute, ETH Zurich No. 185

University of St.Gallen, Department of Economics, Discussion Paper No. 2008-01

30 Pages Posted: 11 Jan 2008

See all articles by Axel Dreher

Axel Dreher

Heidelberg University

Justina A. V. Fischer

Organization for Economic Co-Operation and Development (OECD); Stockholm School of Economics; University of Hohenheim

Multiple version iconThere are 2 versions of this paper

Date Written: January 2008

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. Taking account of the potential simultaneity between terror and decentralization, our results show that expenditure decentralization robustly reduces the number of terror events in a country, while political decentralization has no impact.

Keywords: Terrorism, Decentralization, Democracy

JEL Classification: D74, H70, H40

Suggested Citation

Dreher, Axel and Fischer, Justina A.V., Decentralization as a Disincentive for Transnational Terror? An Empirical Test (January 2008). KOF Working Papers / KOF Swiss Economic Institute, ETH Zurich No. 185, University of St.Gallen, Department of Economics, Discussion Paper No. 2008-01, Available at SSRN: https://ssrn.com/abstract=1081623 or http://dx.doi.org/10.2139/ssrn.1081623

Axel Dreher (Contact Author)

Heidelberg University ( email )

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Justina A.V. Fischer

Organization for Economic Co-Operation and Development (OECD) ( email )

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Stockholm School of Economics

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University of Hohenheim

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