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Government Decentralization As A Disincentive For Transnational Terror? An Empirical Analysis

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  • Axel Dreher
  • Justina A. V. Fischer

Abstract

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. Our results show that expenditure decentralization reduces the number of transnational terror events in a country, while political decentralization has no impact. These results are robust to the choice of control variables and method of estimation.

Suggested Citation

  • Axel Dreher & Justina A. V. Fischer, 2010. "Government Decentralization As A Disincentive For Transnational Terror? An Empirical Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 981-1002, November.
    • Handle: RePEc:ier:iecrev:v:51:y:2010:i:4:p:981-1002
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    File URL: http://hdl.handle.net/10.1111/j.1468-2354.2010.00608.x
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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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