Economic determinants of terrorism

Abstract

Purpose

The purpose of this contribution is to review the theoretical and empirical literature on the economic determinants of terrorism.

Methodology/approach

Review of the relevant academic literature.

Findings

This contribution shows that there is a theoretical foundation to the popular hypothesis that poor economic conditions are conducive to terrorism. A review of the empirical evidence on the economic determinants of terrorism, however, yields an inconclusive result. Some studies find that economic conditions (directly and indirectly) matter to terrorism, whereas a plurality of studies suggest that noneconomic factors are more important.

Research limitations/implications

The findings of the survey indicate that it is unlikely that economic conditions are universal determinants of terrorism. By pointing at several avenues of future research (e.g., a focus on the role of ideology in terrorism), this contribution, however, argues that the opposite also does not need to be true. The influence of economic factors on terrorism should neither be overemphasized nor completely ruled out.

Originality/value of chapter

The contribution offers a comprehensive overview of the economy–terrorism nexus and hints at promising areas of future research.

Citation

Meierrieks, D. (2014), "Economic determinants of terrorism", Understanding Terrorism (Contributions to Conflict Management, Peace Economics and Development, Vol. 22), Emerald Group Publishing Limited, Leeds, pp. 25-49. https://doi.org/10.1108/S1572-8323(2014)0000022002