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How does the Economy Matter for Terrorism

Author

Listed:
  • Matovic, Violeta
  • Wörgötter, Andreas

Abstract

Terrorist movements and suicide terrorists can be found in different societies and among many religions. History is full with examples. Martyrdom is a phenomenon known from early Christhood as a survival strategy against the oppressive Roman state power as well as today’s holy warriors with Islam faith. There were always people, who preferred to die instead of giving up their religion and/or political preferences for a particular way of living. This paper develops a new and original look on the troubling phenomenon of terrorism with the eyes of economics. The main question is to understand why terrorist groups exist at all and why they find enough material support to function actively. The authors argue that missing exit options are a important element in this respect.

Suggested Citation

  • Matovic, Violeta & Wörgötter, Andreas, 2007. "How does the Economy Matter for Terrorism," MPRA Paper 32968, University Library of Munich, Germany, revised 2007.
    • Handle: RePEc:pra:mprapa:32968
    as

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    File URL: https://mpra.ub.uni-muenchen.de/32968/1/MPRA_paper_32968.pdf
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    References listed on IDEAS

    as
    1. Marcus Noland & Howard Pack, 2007. "Arab Economies in a Changing World, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3931, April.
    2. Efraim Benmelech & Claude Berrebi, 2007. "Attack Assignments in Terror Organizations and The Productivity of Suicide Bombers," NBER Working Papers 12910, National Bureau of Economic Research, Inc.
    3. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    4. Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall.
    5. Tony Addison & Mansoob Murshed, 2001. "From Conflict to Reconstruction: Reviving the Social Contract," WIDER Working Paper Series DP2001-48, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Terrorism; incentives; choice; exit barriers;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    Statistics

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