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Paying Them to Hate US: The Effect of US Military Aid on Anti-American Terrorism, 1968–2018

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  • Eugen Dimant
  • Tim Krieger
  • Daniel Meierrieks

Abstract

How does anti-American terrorism in recipient countries respond to US military aid? Does aid protect United States interests abroad or does it have unintended consequences for US security? To answer these questions, we estimate the effect of US military aid on anti-American terrorism in recipient countries for a sample of 174 countries between 1968 and 2018. We find that higher levels of aid especially for military financing and education are associated with a higher likelihood of anti-American terrorism in aid-receiving countries. Examining potential transmission channels, we show that more US military aid correlates with lower military capacity and increases in corruption and exclusionary policies in recipient countries. Our findings are consistent with the argument that military aid aggravates local grievances, creating anti-American resentment and leading to anti-American terrorism. Indeed, we also provide tentative evidence that US military aid is associated with lower public opinion about the United States in recipient countries.

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  • Eugen Dimant & Tim Krieger & Daniel Meierrieks, 2024. "Paying Them to Hate US: The Effect of US Military Aid on Anti-American Terrorism, 1968–2018," The Economic Journal, Royal Economic Society, vol. 134(663), pages 2772-2802.
    • Handle: RePEc:oup:econjl:v:134:y:2024:i:663:p:2772-2802.
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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F35 - International Economics - - International Finance - - - Foreign Aid

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