Can Peace Be Purchased? A Sectoral-Level Analysis of Aid's Influence on Transnational Terrorism
Date Published
Dec 1, 2011
Authors
Joseph K. Young, Michael Findley
Publisher
Public Choice
Citation
Young, J. K., & Findley, M. G. (2011). Can peace be purchased? A sectoral-level analysis of aid's influence on transnational terrorism. Public Choice, 149(3-4), 365-381. doi:10.1007/s11127-011-9875-y
Announcement
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 terrorismÑAidData and ITERATEÑto 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.