Article

Publication Date

January 2013

Journal/Book Title/Conference

Peace Economics, Peace Science and Public Policy

Volume

19

Issue

3

Abstract

This paper investigates the relationship between economic developmentand domestic terrorism. We argue states at intermediate levels of developmentgo through socioeconomic changes that result when traditional economiesare replaced by modern economic relations, which may lead to grievances andsocial mobilizations conducive to terrorism. The effects of economic developmentshould have a curvilinear effect on domestic terrorism. We test our theory usingthe GTD dataset and find support for our theory. We show that states at intermediatelevels of economic development are more prone to domestic terror attacksthan the poorest and richest states. Terror events would appear more likely wherestates fail to provide, or reduce, an economic safety net to mitigate the transformativeeffects of economic development. Moreover, the results show that states thatare highly democratic, and long-enduring, are less prone to domestic terrorismthan less democratic states.

First Page

359

Last Page

368

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