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Government Decentralization as a Disincentive for Transnational Terror? An Empirical Analysis

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  • Dreher, Axel

    (Heidelberg University)

  • Fischer, Justina A.V.

    (University of Mannheim)

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

  • Dreher, Axel & Fischer, Justina A.V., 2009. "Government Decentralization as a Disincentive for Transnational Terror? An Empirical Analysis," IZA Discussion Papers 4259, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4259
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    More about this item

    Keywords

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

    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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