IDEAS home Printed from https://ideas.repec.org/a/sae/jocore/v48y2004i2p230-258.html
   My bibliography  Save this article

Economic Globalization and Transnational Terrorism

Author

Listed:
  • Quan Li

    (Department of Political Science, Pennsylvania State University)

  • Drew Schaub

    (Department of Political Science, Pennsylvania State University)

Abstract

The effect of economic globalization on the number of transnational terrorist incidents within countries is analyzed statistically, using a sample of 112 countries from 1975 to 1997. Results show that trade, foreign direct investment (FDI), and portfolio investment have no direct positive effect on transnational terrorist incidents within countries and that economic developments of a country and its top trading partners reduce the number of terrorist incidents inside the country. To the extent that trade and FDI promote economic development, they have an indirect negative effect on transnational terrorism.

Suggested Citation

  • Quan Li & Drew Schaub, 2004. "Economic Globalization and Transnational Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(2), pages 230-258, April.
    • Handle: RePEc:sae:jocore:v:48:y:2004:i:2:p:230-258
    DOI: 10.1177/0022002703262869
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0022002703262869
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0022002703262869?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
    ---><---

    References listed on IDEAS

    as
    1. Todd Sandler, 1997. "The future challenges of NATO: An economic viewpoint," Defence and Peace Economics, Taylor & Francis Journals, vol. 8(4), pages 319-353.
    2. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    3. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    4. Walter Enders & Todd Sandler, 2000. "Is Transnational Terrorism Becoming More Threatening?," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(3), pages 307-332, June.
    5. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    6. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    7. Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
    8. Alan B. Krueger & Jitka Maleckova, 2002. "Education, Poverty, Political Violence and Terrorism: Is There a Causal Connection?," NBER Working Papers 9074, National Bureau of Economic Research, Inc.
    9. repec:pri:rpdevs:krueger_maleckova_education_poverty_political.pdf is not listed on IDEAS
    10. Sandler, Todd, 1997. "The Future of Nato," Staff General Research Papers Archive 1224, Iowa State University, Department of Economics.
    11. Enders, Walter & Sandler, Todd, 1993. "The Effectiveness of Antiterrorism Policies: A Vector-Autoregression-Intervention Analysis," American Political Science Review, Cambridge University Press, vol. 87(4), pages 829-844, December.
    12. Sandler, Todd & Lapan, Harvey E., 1988. "The Calculus of Dissent: An Analysis of Terrorists' Choice of Targets," Staff General Research Papers Archive 10818, Iowa State University, Department of Economics.
    13. Jeffrey A. Frankel, 2000. "Globalization of the Economy," NBER Working Papers 7858, National Bureau of Economic Research, Inc.
    14. Garrett, Geoffrey, 1998. "Global Markets and National Politics: Collision Course or Virtuous Circle?," International Organization, Cambridge University Press, vol. 52(4), pages 787-824, October.
    15. repec:pri:rpdevs:krueger_maleckova_education_poverty_political is not listed on IDEAS
    16. World Bank, 2002. "World Development Indicators 2002," World Bank Publications - Books, The World Bank Group, number 13921.
    17. Enders, Walter & Sandler, Todd, 1998. "Transnational Terrorism in the Post-Cold War Era," ISU General Staff Papers 199804010800001308, Iowa State University, Department of Economics.
    18. Todd Sandler & Walter Enders & Harvey E. Lapan, 1991. "Economic Analysis Can Help Fight International Terrorism," Challenge, Taylor & Francis Journals, vol. 34(1), pages 10-17, January.
    19. Enders, Walter & Sandler, Todd, 2000. "Is Transnational Terrorism Becoming More Threatening? A Time-Series Investigation," Staff General Research Papers Archive 1823, Iowa State University, Department of Economics.
    20. Edward M. Graham, 2000. "Fighting the Wrong Enemy: Antiglobal Activists and Multinational Enterprises," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 91, January.
    21. Rick L. Williams, 2000. "A Note on Robust Variance Estimation for Cluster-Correlated Data," Biometrics, The International Biometric Society, vol. 56(2), pages 645-646, June.
    22. 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.
    23. Quinn, Dennis, 1997. "The Correlates of Change in International Financial Regulation," American Political Science Review, Cambridge University Press, vol. 91(3), pages 531-551, September.
    24. Li, Quan & Reuveny, Rafael, 2003. "Economic Globalization and Democracy: An Empirical Analysis," British Journal of Political Science, Cambridge University Press, vol. 33(1), pages 29-54, January.
    25. Burkhart, Ross E. & Lewis-Beck, Michael S., 1994. "Comparative Democracy: The Economic Development Thesis," American Political Science Review, Cambridge University Press, vol. 88(4), pages 903-910, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Asongu, Simplice A. & Le Roux, Sara & Singh, Pritam, 2021. "Fighting terrorism in Africa: Complementarity between inclusive development, military expenditure and political stability," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 897-922.
    2. Randall K. Filer & Dragana Stanišić, 2016. "The Effect of Terrorist Incidents on Capital Flows," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 502-513, May.
    3. Asongu, Simplice & Tchamyou, Vanessa & Asongu, Ndemaze & Tchamyou, Nina, 2019. "Fighting terrorism in Africa when existing terrorism levels matter," MPRA Paper 102026, University Library of Munich, Germany.
    4. Scott Helfstein, 2014. "Social capital and terrorism," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(4), pages 363-380, August.
    5. Mirza, Daniel & Verdier, Thierry, 2006. "International trade, security, and transnational terrorism : theory and empirics," Policy Research Working Paper Series 4093, The World Bank.
    6. Sacit Hadi Akdede & Jinyoung Hwang & Emre Can, 2008. "Cultural Diversity, Domestic Political Violence And Public Expenditures," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(3), pages 235-247.
    7. Zimmermann, Ekkart, 2011. "Globalization and terrorism," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 152-161.
    8. Michael Jetter & David Stadelmann, 2019. "Terror per Capita," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 286-304, July.
    9. Simplice Asongu & Vanessa Tchamyou & Ndemaze Asongu & Nina Tchamyou, 2017. "The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism," Journal of African Development, African Finance and Economic Association (AFEA), vol. 19(2), pages 77-91.
    10. Tim Krieger & Daniel Meierrieks, 2010. "Terrorism in the Worlds of Welfare Capitalism," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(6), pages 902-939, December.
    11. Ignacio Sánchez-Cuenca, 2014. "Why Do We Know So Little About Terrorism?," International Interactions, Taylor & Francis Journals, vol. 40(4), pages 590-601, August.
    12. Peter A.G. van Bergeijk, 2009. "Economic Diplomacy and the Geography of International Trade," Books, Edward Elgar Publishing, number 13518.
    13. 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.
    14. Simplice Asongu & Jacinta Nwachukwu & Sara le Roux, 2019. "The role of inclusive development and military expenditure in modulating the effect of terrorism on governance," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(3), pages 681-709, August.
    15. Amar Iqbal Anwar & Mazhar Mughal, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working Papers hal-01885149, HAL.
    16. Claude Berrebi & Jordan Ostwald, 2011. "Earthquakes, hurricanes, and terrorism: do natural disasters incite terror?," Public Choice, Springer, vol. 149(3), pages 383-403, December.
    17. Friedrich Schneider, 2009. "Die Finanzströme von organisierter Kriminalität und Terrorismus: was wissen wir (nicht)?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 78(4), pages 73-87.
    18. Maja Nikšić Radić, 2018. "Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis," Sustainability, MDPI, vol. 10(12), pages 1-17, December.
    19. Robert E.B. Lucas (ed.), 2014. "International Handbook on Migration and Economic Development," Books, Edward Elgar Publishing, number 15465.
    20. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2015. "The Economics Of Counterterrorism: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 131-157, February.
    21. Claude Berrebi & Jordan Ostwald, 2011. "Earthquakes, hurricanes, and terrorism: do natural disasters incite terror?," Public Choice, Springer, vol. 149(3), pages 383-403, December.
    22. Serfraz, Ayesha, 2017. "What is the effect of foreign direct investment inflows on economic growth in Pakistan? An empirical analysis in the light of religious sectarianism as catalyst for terrorism," ZÖSS-Discussion Papers 59, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    23. Jülide Yildirim & Nadir Öcal, 2013. "Analysing The Determinants Of Terrorism In Turkey Using Geographically Weighted Regression," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(3), pages 195-209, June.
    24. James A. Piazza, 2013. "Regime Age and Terrorism: Are New Democracies Prone to Terrorism?," International Interactions, Taylor & Francis Journals, vol. 39(2), pages 246-263, April.
    25. Peter A.G. van Bergeijk, 2019. "Deglobalization 2.0," Books, Edward Elgar Publishing, number 18560.

    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. Quan Li, 2005. "Does Democracy Promote or Reduce Transnational Terrorist Incidents?," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(2), pages 278-297, April.
    2. José García-Montalvo & Marta Reynal-Querol, 2018. "Earthquakes and Terrorism: The Long Lasting Effect of Seismic Shocks," Working Papers 1020, Barcelona School of Economics.
    3. Montalvo, José G. & Reynal-Querol, Marta, 2019. "Earthquakes and terrorism: The long lasting effect of seismic shocks," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 541-561.
    4. José Garcia Montalvo & Marta Reynal-Querol, 2018. "Earthquakes and terrorism: the long lasting effect of seismic shocks," Economics Working Papers 1599, Department of Economics and Business, Universitat Pompeu Fabra.
    5. Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June.
    6. Jeff Victoroff, 2005. "The Mind of the Terrorist," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(1), pages 3-42, February.
    7. Rivera, Sandra A. & Tsigas, Marinos E., 2005. "How does China’s growth affect India? An Economywide Analysis," Conference papers 331359, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Bruno S. Frey & Simon Luechinger, "undated". "Terrorism: Deterrence May Backfire," IEW - Working Papers 136, Institute for Empirical Research in Economics - University of Zurich.
    9. Michael Stohl, 2007. "Swamps, Hot Spots, Dick Cheney and the Internationalization of Terrorist Campaigns," Conflict Management and Peace Science, Peace Science Society (International), vol. 24(4), pages 257-264, September.
    10. Todd Sandler, 2003. "Collective Action and Transnational Terrorism," The World Economy, Wiley Blackwell, vol. 26(6), pages 779-802, June.
    11. 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.
    12. William Shughart, 2006. "An analytical history of terrorism, 1945–2000," Public Choice, Springer, vol. 128(1), pages 7-39, July.
    13. Alex Braithwaite & QUAN LI, 2007. "Transnational Terrorism Hot Spots: Identification and Impact Evaluation," Conflict Management and Peace Science, Peace Science Society (International), vol. 24(4), pages 281-296, September.
    14. Walter Enders & Todd Sandler, 2000. "Is Transnational Terrorism Becoming More Threatening?," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(3), pages 307-332, June.
    15. Blomberg, S. Brock & Hess, Gregory D. & Orphanides, Athanasios, 2004. "The macroeconomic consequences of terrorism," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 1007-1032, July.
    16. Jülide Yildirim & Nadir Öcal, 2013. "Analysing The Determinants Of Terrorism In Turkey Using Geographically Weighted Regression," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(3), pages 195-209, June.
    17. Walter Enders & Todd Sandler, 2005. "After 9/11," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(2), pages 259-277, April.
    18. Indra de Soysa & Eric Neumayer, 2004. "False Prophet, or Genuine Savior? Assessing the Effects of Economic Openness on Sustainable Development, 1980–1999," International Trade 0409001, University Library of Munich, Germany, revised 13 Oct 2004.
    19. Brian Burgoon, 2006. "On Welfare and Terror," Journal of Conflict Resolution, Peace Science Society (International), vol. 50(2), pages 176-203, April.
    20. de Soysa, Indra & Neumayer, Eric, 2005. "False Prophet, or Genuine Savior? Assessing the Effects of Economic Openness on Sustainable Development, 1980–99," International Organization, Cambridge University Press, vol. 59(3), pages 731-772, July.

    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:sae:jocore:v:48:y:2004:i:2:p:230-258. 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: SAGE Publications (email available below). General contact details of provider: http://pss.la.psu.edu/ .

    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.