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

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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.

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Authors and Affiliations

  1. School of Public Affairs, American University, 4400 Massachusetts Avenue NW, Washington, DC, 20016-8043, USA

    Joseph K. Young

  2. Department of Political Science, Brigham Young University, 734 SWKT, Provo, UT, 84602, USA

    Michael G. Findley

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  1. Joseph K. Young
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  2. Michael G. Findley
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Correspondence to Michael G. Findley.

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Young, J.K., Findley, M.G. Can peace be purchased? A sectoral-level analysis of aid’s influence on transnational terrorism. Public Choice 149, 365 (2011). https://doi.org/10.1007/s11127-011-9875-y

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