Decentralization as a Disincentive for Transnational Terror? An Empirical Test
31 Pages Posted: 11 Mar 2008 Last revised: 4 Jun 2008
Date Written: March 2008
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: Suggested Citation