What is the Role of Terroristic Acts on Subsidy and Donor Provisions to Microfinance?
46 Pages Posted: 27 May 2015
Date Written: August 1, 2014
We examine the relationship between terroristic activity and external support to the microfinance industry from private and public donors in the form of subsidies and donations, as well as the relationship between subsidies and donations in the context of terrorism. Using information from 94 countries over the period from 2000 through 2010, we find a positive relationship between subsidies and acts of terrorism. We also find an increase in these measures in response to increased terroristic activity. The results are robust to different model specifications.
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