Can peace be purchased? A sectoral-level analysis of aid's influence on transnational terrorism

Research output: Contribution to journalArticlepeer-review

61 Scopus citations

Abstract

Does foreign aid reduce terrorism? We examine whether foreign aid decreases terrorism by analyzing whether aid targeted toward certain sectors is more effective than others. We use the most comprehensive databases on foreign aid and transnational terrorism-AidData and ITERATE-to provide a series of statistical tests. Our results show that foreign aid decreases terrorism especially when targeted toward sectors, such as education, health, civil society, and conflict prevention. These sector-level results indicate that foreign aid can be an effective instrument in fighting terrorism if allocated in appropriate ways.

Original languageEnglish
Pages (from-to)365-381
Number of pages17
JournalPublic Choice
Volume149
Issue number3
DOIs
StatePublished - Dec 2011

Funding

Acknowledgements We thank Zach Davis, Angela O’Neill, and Swati Sharma for helpful research assistance, as well as Axel Dreher, Amanda Licht, Todd Sandler, the participants at the 2011 Terrorism and Policy Conference, and the anonymous reviewers at Public Choice for their valuable comments. We also gratefully acknowledge grants that supported data collection and research from the National Science Foundation # 0904883, Gates Foundation, and Hewlett Foundation.

FundersFunder number
U.S. Department of Energy Chinese Academy of Sciences Guangzhou Municipal Science and Technology Project Oak Ridge National Laboratory Extreme Science and Engineering Discovery Environment National Science Foundation National Energy Research Scientific Computing Center National Natural Science Foundation of China0904883
Bill and Melinda Gates Foundation
William and Flora Hewlett Foundation

    UN SDGs

    This output contributes to the following UN Sustainable Development Goals (SDGs)

    1. SDG 4 - Quality Education
      SDG 4 Quality Education
    2. SDG 16 - Peace, Justice and Strong Institutions
      SDG 16 Peace, Justice and Strong Institutions

    Keywords

    • Foreign aid
    • Panel analysis
    • Sectoral aid and terrorism
    • Transnational terrorism

    ASJC Scopus subject areas

    • Sociology and Political Science
    • Economics and Econometrics

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