Economic conditions and terrorism

Socioeconomic Determinants of Terrorism

“…Previous research suggests various determinants/factors which may relate to terrorism in both developed and developing countries. However, the theoretical and empirical literature, in the past decade in particular, is inconclusive about the relationship between socioeconomic indicators and terrorism (Market impact: Halkos et al, 2017;Orbaneja et al, 2017;Governance: Asongu & Nwachukwu, 2017;Economic impact: Abadie & Gardeazabal, 2008;Blomberg et al, 2004;Estrada et al, 2015;Ismail & Amjad, 2014;Malik & Zaman, 2013;Shahbaz, 2013;Shahbaz et al, 2013). A number of socioeconomic indicators associated with terrorism in the literature are discussed in this section.…”

“…However, Krueger and Malečková (2003) identify little direct connection between poverty and terrorism. Blomberg et al (2004) found that people who are unhappy with their current economic status and unable to bring about institutional change may engage in terrorist activities, which reflects a vicious cycle. Conversely, Meierrieks and Gries (2013) report that poor economic growth was heavily influenced by terrorism in Latin American countries (Halkos et al, 2017).…”

“…Several economists discuss the role of war, peace, and disputes in the economy (Keynes, 1919;Robbins, 1942). Blomberg et al (2004) argue that terrorism is more likely to have a negative impact on the economy when growth rates are low, tax rates are high and political unrest is increasing. Blomberg et al (2004:466) hypothesize that "The theory posits that during poor economic times and when the relative share of the pie is smaller, dissidents will attack by some means."…”

“…Malik and Zaman (2013) also report that terrorism has been shown to have the least effect on GDP growth. Specifically, terrorism is expected to cause incomes to fall due to the loss of capital assets (Blomberg et al, 2004). According to selectorate theory, the political regime could be a factor linked to terrorism (Bueno de Mesquita et al, 2003).…”

The Economic Effects of Direct Democracy - A Cross-Country Assessment

“…Some of the costeffectiveness is lost when waste collection is provided by the town itself and additional efficiency losses materialize if waste collection is provided in towns without direct democratic elements. Blomberg et al (2004) ask whether there is any significant difference in the effective provision of public capital between initiative and non-initiative states among the 48 continental U.S. states during the period from 1969 until 1986. They find that non-initiative states are some 20 percent less effective in providing public capital than initiative states.…”