On the origin of domestic and international terrorism

We analyze the determinants of the origin of domestic and international terrorism in a large panel data set of 159 countries spanning from 1970 to 2007. We show that terror increases with GDP per capita, a higher polity score measuring a more open and competitive political system and experiences of domestic conflict, anarchy and regime transitions. Our evidence thus contradicts the notion that terrorism is rooted in economic deprivation or that strongly autocratic regimes breed more terrorists. Rather we show that weak or failing states are an incubator for terrorism. We also show that the causes of domestic terror and international terror are similar.

Research highlights► We analyze the determinants of the origin of terror in a large panel data set covering 159 countries for 1970-2007. ► It is the first comprehensive study using a data set that covers also domestic terror (85 % of all incidents). ► We carefully use various measures for (i) income and economic development, (ii) political regime and democracy, (iii) political stability, transition and failed states. ► We find that terror is not rooted in economic deprivation, strongly autocratic regimes do not breed more terror, failing states are a hotbed for terror and past conflicts increase terror.