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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, 2009. "Government Decentralization as a Disincentive for Transnational Terror? An Empirical Analysis," CESifo Working Paper Series 2699, CESifo.
    • Handle: RePEc:ces:ceswps:_2699
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    More about this item

    Keywords

    terrorism; decentralization; federalism; governance quality; government effectiveness;
    All these keywords.

    JEL classification:

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

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