IZA DP No. 4259: Government Decentralization as a Disincentive for Transnational Terror? An Empirical Analysis
published in: International Economic Review, 2010, 51 (4), 981 - 1002
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.