Suchergebnisse

We explore the links between the incidence of terrorism & the state of a country's economy. Groups that are unhappy with the current economic status quo, yet unable to bring about drastic institutional changes, may find it rational to engage in terrorist activities. The result is a pattern of reduced economic activity & increased terrorism. In contrast, an alternative environment can emerge where access to economic resources is more abundant & terrorism is reduced. Our empirical results are consistent with the theory. We find that for democratic, high income countries, economic contractions lead to increased likelihood of terrorist activities. 3 Tables, 22 References. [Copyright 2004 Elsevier B.V.]