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Negative returns: U.S. military policy and anti-american terrorism

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  • Dimant, Eugen
  • Krieger, Tim
  • Meierrieks, Daniel

Abstract

We investigate the effect of U.S. military aid and U.S. troop deployments on anti-American terrorism, using a sample of 106 countries between 1986 and 2011. We find that greater military commitment leads to more anti-American terrorism. We study the underlying mechanisms using a mediation analysis and show that both U.S. military aid and troop deployments in foreign countries do not improve local state capacity. Rather, we find that more military aid (but not troop deployments) is linked to poorer political-institutional outcomes in aid-receiving countries, explaining the positive association between U.S. military aid and anti-American terrorism. Our findings suggest that U.S. military policy does not make the United States safer from transnational terrorism.

Suggested Citation

  • Dimant, Eugen & Krieger, Tim & Meierrieks, Daniel, 2017. "Negative returns: U.S. military policy and anti-american terrorism," Discussion Paper Series 2017-05, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    • Handle: RePEc:zbw:wgspdp:201705
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    More about this item

    Keywords

    oil rents; inequality; VAR; ARDL; sanctions; Iran;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General

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