Bribes and bombs: the effect of corruption on terrorism

HIGHLIGHTS

  • What: The authors provide correlational evidence for the mechanisms underlying the corruption-terrorism nexus, examining the impact of corruption on public goods provision, political dissatisfaction, and counter-terrorism capacity. Leveraging plausibly exogenous variation in the exposure to corruption in geographically and economically proximate countries to provide causal estimates of the effect of corruption on terrorism, the authors show that political corruption leads to more terrorist activity in the country of interest. The possibility of reverse causation is the main motivation for the IV approach described below. The authors assess the strength of the instrument by means of . . .

     

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