Negative Returns: U.S. Military Aid, Domestic Institutions and Anti-American Terrorism

37 Pages Posted: 3 May 2019

See all articles by Eugen Dimant

Eugen Dimant

University of Pennsylvania, Behavioral Ethics Lab

Tim Krieger

University of Freiburg - Department of Economics

Daniel Meierrieks

WZB Berlin Social Science Center

Date Written: April 15, 2019

Abstract

Using cross-national data for 148 countries between 1996 and 2015, we investigate the relationship between U.S. military aid, institutions in aid-receiving countries and anti-American terrorism. We find that countries — such as Columbia and Pakistan — that receive more military aid from the United States are more likely to produce anti-American terrorism. Studying the underlying mechanisms, we find that U.S. military aid contributes to poor domestic institutional conditions; in turn, poor domestic institutions incite anti-American violence. Considering these findings, we argue that U.S. military aid amplifies anti-American terrorism by undermining counter-terrorism effectiveness and facilitating local grievances associated with poor institutional quality.

Keywords: U.S. Military Aid, Anti-American Terrorism, Transnational Terrorism

JEL Classification: D74, F35, F50

Suggested Citation

Dimant, Eugen and Krieger, Tim and Meierrieks, Daniel, Negative Returns: U.S. Military Aid, Domestic Institutions and Anti-American Terrorism (April 15, 2019). Available at SSRN: https://ssrn.com/abstract=3372497 or http://dx.doi.org/10.2139/ssrn.3372497

Eugen Dimant (Contact Author)

University of Pennsylvania, Behavioral Ethics Lab ( email )

Philadelphia, PA 19104
United States

HOME PAGE: http://https://sites.google.com/site/eugendimant/

Tim Krieger

University of Freiburg - Department of Economics ( email )

University of Freiburg
Wilhelmstr. 1b
Freiburg, D-79085
Germany

HOME PAGE: http://www.wguth.uni-freiburg.de

Daniel Meierrieks

WZB Berlin Social Science Center ( email )

Reichpietschufer
50
Berlin, D-10785
Germany

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