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Aid and the Delegated Fight Against Terrorism

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  • Jean‐Paul Azam
  • Alexandra Delacroix

Abstract

A positive empirical relationship is found between the level of foreign aid received by a country and the number of terrorist attacks originating from it. A simple model is used to explain it, where the donor delegates some actions against terrorism to the aid‐recipient government. Aid is endogenous in an econometric equation explaining participation in terrorist events, as expected from the model, and an attacks‐supply curve in which aid has a negative impact is presented at the end.

Suggested Citation

  • Jean‐Paul Azam & Alexandra Delacroix, 2006. "Aid and the Delegated Fight Against Terrorism," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 330-344, May.
    • Handle: RePEc:bla:rdevec:v:10:y:2006:i:2:p:330-344
    DOI: 10.1111/j.1467-9361.2006.00321.x
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    References listed on IDEAS

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    1. Alesina, Alberto & Dollar, David, 2000. "Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
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