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Remittances and terrorism: A global analysis

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  • Raechelle Mascarenhas
  • Todd Sandler

Abstract

This paper is the first global investigation of the relationship between remittances and terrorism. To discern this relationship, we draw terrorism event data from the Global Terrorism Database and International Terrorism: Attributes of Terrorism Events. When a host of standard terrorism controls is employed, lagged remittances as a share of gross domestic product have a positive and significant impact on both domestic and transnational terrorist attacks. For the venue country's viewpoint, lagged remittances have a greater marginal impact on domestic than on transnational terrorism. However, when we investigate remittances to the home country of the perpetrator, lagged remittances have the greatest marginal impact on transnational terrorism. Throughout our investigation, standard terrorism controls perform according to our priors and those of the literature, lending credence to the isolation of the impact of remittances. We also account for endogeneity concerns.

Suggested Citation

  • Raechelle Mascarenhas & Todd Sandler, 2014. "Remittances and terrorism: A global analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(4), pages 331-347, August.
    • Handle: RePEc:taf:defpea:v:25:y:2014:i:4:p:331-347
    DOI: 10.1080/10242694.2013.824676
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    1. Martin Gassebner & Simon Luechinger, 2011. "Lock, stock, and barrel: a comprehensive assessment of the determinants of terror," Public Choice, Springer, vol. 149(3), pages 235-261, December.
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    2. Helbling, Marc & Meierrieks, Daniel, 2022. "Terrorism and Migration: An Overview," British Journal of Political Science, Cambridge University Press, vol. 52(2), pages 977-996, April.
    3. Yilmaz Onur ARI & Ibrahim BELLO, 2020. "Terrorism - workers' remittances nexus: empirical evidence from Turkey," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 70-93, December.
    4. Silke Meyer, 2020. "“Home Is Where I Spend My Money”: Testing the Remittance Decay Hypothesis with Ethnographic Data from an Austrian-Turkish Community," Social Inclusion, Cogitatio Press, vol. 8(1), pages 275-284.
    5. Dorsaf Sridi & Wafa Ghardallou, 2021. "Remittances and disaggregated country risk ratings in Tunisia: an ARDL approach," Middle East Development Journal, Taylor & Francis Journals, vol. 13(1), pages 191-211, January.
    6. Metaxas, Theodore & Kechagia, Polyxeni, 2017. "FDI and Terrorism in developing Asia: Approaches and Discussion," MPRA Paper 78165, University Library of Munich, Germany.
    7. Michael Batu, 2019. "Can remittances buy peace?," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(4), pages 891-913, October.
    8. Economou Athina & Kollias Christos, 2015. "Terrorism and Political Self-Placement in European Union Countries," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(2), pages 217-238, April.
    9. Polyxeni, Kechagia & Theodore, Metaxas, 2019. "An empirical investigation of FDI inflows in developing economies: Terrorism as a determinant factor," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).
    10. Krieger, Tim, 2020. "Migration and terrorism," Discussion Paper Series 2020-06, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    11. Raza, Syed Ali & Shah, Nida & Khan, Waqas Ahmed, 2017. "Do Workers’ Remittances Increase Terrorism? Evidence from South Asian Countries," MPRA Paper 86745, University Library of Munich, Germany, revised 2017.

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