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Foreign Aid vs. Military Intervention in the War on Terror

Author

Listed:
  • Jean-Paul Azam

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Véronique Thelen

    (Unknown)

Abstract
Objective Relatively few empirical studies have analyzed the foreign policy options that leaders employ to counter terrorism, and the results have been mixed to date. This study takes a fresh look at two such policies: foreign aid and foreign military intervention. Method Using system generalized method of moments to control for endogeneity and a technique that identifies short- and long-term effects, we examine the impact of both policy options within a sample of 122 countries from 1970 to 2005. Results The results suggest that foreign aid may be associated with an increase in the number of terrorist incidents, fatalities, and casualties. They also indicate that foreign military intervention increases terrorist incidents in the short term and may eventually reduce them in the long term. Conclusion These findings should give pause to those who consider foreign aid to be a possible antidote for both transnational and domestic terrorism. Unfortunately, policymakers searching for ways to reduce terrorist activity will find little solace if they turn to foreign military intervention since a surge in terror incidents in the short term after a military intervention establishes a significantly higher baseline of terror activity and violence. It may take decades for terror activity to return to its preintervention level. Policymakers searching for options to combat international terror should consequently approach both foreign aid and foreign military intervention with caution.

Suggested Citation

  • Jean-Paul Azam & Véronique Thelen, 2010. "Foreign Aid vs. Military Intervention in the War on Terror," Post-Print hal-04419228, HAL.
    • Handle: RePEc:hal:journl:hal-04419228
    DOI: 10.1111/ssqu.12599
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    References listed on IDEAS

    as
    1. Jean-Paul Azam & Véronique Thelen, 2008. "The roles of foreign aid and education in the war on terror," Public Choice, Springer, vol. 135(3), pages 375-397, June.
    2. Alesina, Alberto & Dollar, David, 2000. "Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
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    4. J. Svensson, 1999. "Aid, Growth and Democracy," Economics and Politics, Wiley Blackwell, vol. 11(3), pages 275-297, November.
    5. 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.
    6. William Shughart, 2006. "An analytical history of terrorism, 1945–2000," Public Choice, Springer, vol. 128(1), pages 7-39, July.
    7. Jean-Paul Azam, 2005. "Suicide-bombing as inter-generational investment," Public Choice, Springer, vol. 122(1), pages 177-198, January.
    8. Ethan Bueno De Mesquita, 2005. "The Quality of Terror," American Journal of Political Science, John Wiley & Sons, vol. 49(3), pages 515-530, July.
    9. Atin Basuchoudhary & William Shughart, 2010. "On Ethnic Conflict And The Origins Of Transnational Terrorism," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(1), pages 65-87.
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    Cited by:

    1. Krieger, Tim & Brockhoff, Sarah & Meierrieks, Daniel, 2012. "Great Expectations and Hard Times The (Nontrivial) Impact of Education on Domestic Terrorism," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62083, Verein für Socialpolitik / German Economic Association.
    2. Uchenna Efobi & Simplice Asongu & Ibukun Beecroft, 2018. "Aid, Terrorism, and Foreign Direct Investment: Empirical Insight Conditioned on Corruption Control," International Economic Journal, Taylor & Francis Journals, vol. 32(4), pages 610-630, October.
    3. Simplice Asongu & John Ssozi, 2017. "When is Foreign Aid Effective in Fighting Terrorism? Threshold Evidence," International Economic Journal, Taylor & Francis Journals, vol. 31(3), pages 370-389, July.
    4. Todd Sandler, 2011. "The many faces of counterterrorism: an introduction," Public Choice, Springer, vol. 149(3), pages 225-234, December.
    5. Jean-Paul Azam & Véronique Thelen, 2014. "The Geo-Politics of Foreign Aid and Transnational Terrorism," Revue d’économie du développement, De Boeck Université, vol. 22(HS01), pages 263-288.
    6. Simplice A. Asongu, 2019. "The persistence of global terrorism," Working Papers of the African Governance and Development Institute. 19/053, African Governance and Development Institute..
    7. Simplice A. Asongu & Stella-Maris I. Orim & Rexon T. Nting, 2019. "Terrorism and Social Media: Global Evidence," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 22(3), pages 208-228, July.
    8. Paul Bezerra & Alex Braithwaite, 2016. "Locating foreign aid commitments in response to political violence," Public Choice, Springer, vol. 169(3), pages 333-355, December.
    9. Bove, Vincenzo & Sekeris, Petros, 2011. "Economic Determinants of Third-Party Intervention in Civil Conflict," NEPS Working Papers 4/2011, Network of European Peace Scientists.
    10. Khusrav Gaibulloev & Todd Sandler, 2019. "Terrorism and affinity of nations," Public Choice, Springer, vol. 178(3), pages 329-347, March.
    11. Axel Dreher & Andreas Fuchs, 2011. "Does terror increase aid?," Public Choice, Springer, vol. 149(3), pages 337-363, December.
    12. Jean-Paul Azam, 2012. "Why suicide-terrorists get educated, and what to do about it," Public Choice, Springer, vol. 153(3), pages 357-373, December.
    13. Joseph Young & Michael Findley, 2011. "Can peace be purchased? A sectoral-level analysis of aid’s influence on transnational terrorism," Public Choice, Springer, vol. 149(3), pages 365-381, December.
    14. Redlin, Margarete & Gries, Thomas & Meierrieks, Daniel, 2014. "Oppressive Governments, US Closeness, and Anti-US Terrorism," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100588, Verein für Socialpolitik / German Economic Association.
    15. Azam, Jean-Paul & Thelen, Véronique, 2012. "Where to Spend Foreign Aid to Counter Terrorism," TSE Working Papers 12-316, Toulouse School of Economics (TSE).

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