IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v27y2011is1ps37-s49.html
   My bibliography  Save this article

The socio-economic determinants of terrorism and political violence in Western Europe (1994–2007)

Author

Listed:
  • Caruso, Raul
  • Schneider, Friedrich

Abstract

The main objective of this paper is to empirically investigate the socio-economic causes of terrorism and political violence in a sample of 12 countries in Western Europe. First, we show that in western European countries the classical economic argument of opportunity cost is confirmed. That is, the larger is the set of current economic opportunities for individuals the lower is the likelihood or the willingness for them to be involved in a terrorist activity. Second, expected future economic growth seems to be associated with an increase in current terrorist activities. Eventually, our results also show that terrorist brutality (measured in people killed) is positively associated with real GDP per capita.

Suggested Citation

  • Caruso, Raul & Schneider, Friedrich, 2011. "The socio-economic determinants of terrorism and political violence in Western Europe (1994–2007)," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 37-49.
    • Handle: RePEc:eee:poleco:v:27:y:2011:i:s1:p:s37-s49
    DOI: 10.1016/j.ejpoleco.2011.02.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176268011000243
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejpoleco.2011.02.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kirchgässner, Gebhard, 2010. "On minimal morals," European Journal of Political Economy, Elsevier, vol. 26(3), pages 330-339, September.
    2. Olson, Mancur, 1963. "Rapid Growth as a Destabilizing Force," The Journal of Economic History, Cambridge University Press, vol. 23(4), pages 529-552, December.
    3. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    4. Blomberg, S. Brock & Hess, Gregory D. & Weerapana, Akila, 2004. "Economic conditions and terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 463-478, June.
    5. Borooah, Vani K. & Paldam, Martin, 2007. "Why is the world short of democracy?: A cross-country analysis of barriers to representative government," European Journal of Political Economy, Elsevier, vol. 23(3), pages 582-604, September.
    6. Freytag, Andreas & Krüger, Jens J. & Meierrieks, Daniel & Schneider, Friedrich, 2011. "The origins of terrorism: Cross-country estimates of socio-economic determinants of terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 5-16.
    7. Alberto Abadie, 2006. "Poverty, Political Freedom, and the Roots of Terrorism," American Economic Review, American Economic Association, vol. 96(2), pages 50-56, May.
    8. S. Mansoob Murshed & Scott Gates, 2005. "Spatial–Horizontal Inequality and the Maoist Insurgency in Nepal," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 121-134, February.
    9. Tim Krieger & Daniel Meierrieks, 2011. "What causes terrorism?," Public Choice, Springer, vol. 147(1), pages 3-27, April.
    10. Anjali Thomas Bohlken & Ernest John Sergenti, 2010. "Economic growth and ethnic violence: An empirical investigation of Hindu—Muslim riots in India," Journal of Peace Research, Peace Research Institute Oslo, vol. 47(5), pages 589-600, September.
    11. Niklas Potrafke, 2012. "Islam and democracy," Public Choice, Springer, vol. 151(1), pages 185-192, April.
    12. Sayre Edward A, 2009. "Labor Market Conditions, Political Events, and Palestinian Suicide Bombings," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 15(1), pages 1-28, May.
    13. Venieris, Yiannis P & Gupta, Dipak K, 1983. "Sociopolitical and Economic Dimensions of Development: A Cross-Section Model," Economic Development and Cultural Change, University of Chicago Press, vol. 31(4), pages 727-756, July.
    14. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part I)," Discussion Papers of DIW Berlin 1049, DIW Berlin, German Institute for Economic Research.
    15. Efraim Benmelech & Claude Berrebi, 2007. "Human Capital and the Productivity of Suicide Bombers," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 223-238, Summer.
    16. Peter Kurrild-Klitgaard & Mogens Justesen & Robert Klemmensen, 2006. "The political economy of freedom, democracy and transnational terrorism," Public Choice, Springer, vol. 128(1), pages 289-315, July.
    17. Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall.
    18. Gundlach, Erich & Paldam, Martin, 2009. "A farewell to critical junctures: Sorting out long-run causality of income and democracy," European Journal of Political Economy, Elsevier, vol. 25(3), pages 340-354, September.
    19. Krueger, Alan B., 2008. "What makes a homegrown terrorist? Human capital and participation in domestic Islamic terrorist groups in the U.S.A," Economics Letters, Elsevier, vol. 101(3), pages 293-296, December.
    20. Debraj Ray, 2010. "Uneven Growth: A Framework for Research in Development Economics," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 45-60, Summer.
    21. Pushan Dutt & Devashish Mitra, 2008. "Inequality and the Instability of Polity and Policy," Economic Journal, Royal Economic Society, vol. 118(531), pages 1285-1314, August.
    22. Alan B. Krueger, 2008. "What Makes a Homegrown Terrorist? Human Capital and Participation in Domestic Islamic Terrorist Groups in the U.S.A," Working Papers 1094, Princeton University, Department of Economics, Industrial Relations Section..
    23. Lipset, Seymour Martin, 1959. "Some Social Requisites of Democracy: Economic Development and Political Legitimacy1," American Political Science Review, Cambridge University Press, vol. 53(1), pages 69-105, March.
    24. Sofranko, Andrew J & Bealer, Robert C, 1973. "Modernization Balance, Imbalance, and Domestic Instability," Economic Development and Cultural Change, University of Chicago Press, vol. 22(1), pages 52-72, October.
    25. Niall O'Higgins, 1997. "The challenge of youth unemployment," International Social Security Review, John Wiley & Sons, vol. 50(4), pages 63-93, October.
    26. Arye Hillman, 2007. "Economic and security consequences of supreme values," Public Choice, Springer, vol. 131(3), pages 259-280, June.
    27. White, James W, 1989. "Economic Development and Sociopolitical Unrest in Nineteenth-Century Japan," Economic Development and Cultural Change, University of Chicago Press, vol. 37(2), pages 231-260, January.
    28. Sandler, Todd & Tschirhart, John T. & Cauley, Jon, 1983. "A Theoretical Analysis of Transnational Terrorism," American Political Science Review, Cambridge University Press, vol. 77(1), pages 36-54, March.
    29. Ethan Bueno De Mesquita, 2005. "The Quality of Terror," American Journal of Political Science, John Wiley & Sons, vol. 49(3), pages 515-530, July.
    30. Berrebi Claude, 2007. "Evidence about the Link Between Education, Poverty and Terrorism among Palestinians," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 13(1), pages 1-38, December.
    31. Bernholz, Peter, 2004. "Supreme values as the basis for terror," European Journal of Political Economy, Elsevier, vol. 20(2), pages 317-333, June.
    32. Caruso, Raul & Schneider, Friedrich, 2009. "Al Qaeda and Jihadist Terrorism in the Light of Contest Theory, Empirical Evidence for the period 2004-2008," MPRA Paper 15856, University Library of Munich, Germany.
    33. David Fielding & Anja Shortland, 2005. ""An Eye for an Eye, a Tooth for a Tooth." A Study of Political Violence and Counter-insurgency in Egypt," Discussion Papers in Economics 05/11, Division of Economics, School of Business, University of Leicester.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ismail, Aisha & Amjad, Shehla, 2014. "Determinants of terrorism in Pakistan: An empirical investigation," Economic Modelling, Elsevier, vol. 37(C), pages 320-331.
    2. Freytag, Andreas & Krüger, Jens J. & Meierrieks, Daniel & Schneider, Friedrich, 2011. "The origins of terrorism: Cross-country estimates of socio-economic determinants of terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 5-16.
    3. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part II)," Discussion Papers of DIW Berlin 1050, DIW Berlin, German Institute for Economic Research.
    4. Kis-Katos, Krisztina & Liebert, Helge & Schulze, Günther G., 2011. "On the origin of domestic and international terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 17-36.
    5. Kis-Katos, Krisztina & Liebert, Helge & Schulze, Günther G., 2014. "On the heterogeneity of terror," European Economic Review, Elsevier, vol. 68(C), pages 116-136.
    6. Krieger, Tim & Brockhoff, Sarah & Meierrieks, Daniel, 2012. "Great Expectations and Hard Times The (Nontrivial) Impact of Education on Domestic Terrorism," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62083, Verein für Socialpolitik / German Economic Association.
    7. Caruso, Raul & Schneider, Friedrich, 2013. "Brutality of Jihadist terrorism. A contest theory perspective and empirical evidence in the period 2002–2010," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 685-696.
    8. Caruso Raul & Gavrilova Evelina, 2012. "Youth Unemployment, Terrorism and Political Violence, Evidence from the Israeli/Palestinian Conflict," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(2), pages 1-37, August.
    9. Syed Muhammad All-E-Raza Rizvi & Marie-Ange Véganzonès-Varoudakis, 2019. "Economic, social, and institutional determinants of domestic conflict in fragile States," Working Papers hal-02340977, HAL.
    10. Sarah Brockhoff & Tim Krieger & Daniel Meierrieks, 2010. "Ties That Do Not Bind (Directly): The Education-Terrorism Nexus Revisited," Working Papers CIE 26, Paderborn University, CIE Center for International Economics.
    11. Miaari, Sami & Zussman, Asaf & Zussman, Noam, 2014. "Employment restrictions and political violence in the Israeli–Palestinian conflict," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 24-44.
    12. L. Elbakidze & Y. H. Jin, 2015. "Are Economic Development and Education Improvement Associated with Participation in Transnational Terrorism?," Risk Analysis, John Wiley & Sons, vol. 35(8), pages 1520-1535, August.
    13. Levan Elbakidze & Yanhong Jin, 2012. "Victim Countries of Transnational Terrorism: An Empirical Characteristics Analysis," Risk Analysis, John Wiley & Sons, vol. 32(12), pages 2152-2165, December.
    14. Forrester, Andrew C. & Powell, Benjamin & Nowrasteh, Alex & Landgrave, Michelangelo, 2019. "Do immigrants import terrorism?," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 529-543.
    15. Klor, Esteban & Berrebi, Claude & Benmelech, Efraim, 2010. "Economic Conditions and the Quality of Suicide Terrorism," CEPR Discussion Papers 7995, C.E.P.R. Discussion Papers.
    16. Friedrich Schneider & Raul Caruso, 2011. "The (Hidden) Financial Flows of Terrorist and Transnational Crime Organizations: A Literature Review and Some Preliminary Empirical Results," Economics of Security Working Paper Series 52, DIW Berlin, German Institute for Economic Research.
    17. Shahbaz, Muhammad & Shabbir, Shahbaz Muhammad, 2011. "Is hike in inflation responsible for rise in terrorism in Pakistan?," MPRA Paper 31236, University Library of Munich, Germany, revised 29 May 2011.
    18. Shahbaz, Muhammad, 2013. "Linkages between inflation, economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 32(C), pages 496-506.
    19. Gries, Thomas & Haake, Claus-Jochen, 2016. "An Economic Theory of 'Destabilization War' '- Compromise for Peace versus Conventional, Guerilla, or Terrorist Warfare," VfS Annual Conference 2016 (Augsburg): Demographic Change 145617, Verein für Socialpolitik / German Economic Association.
    20. Amir Sabri & Günther G. Schulze, 2021. "Are suicide terrorists different from ‘regular militants’?," Public Choice, Springer, vol. 188(1), pages 155-181, July.

    More about this item

    Keywords

    Economic determinants of terrorism; Political violence; Economic deprivation; Immiserizing modernization; Brutality of violence;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:27:y:2011:i:s1:p:s37-s49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.