Government decentralization as a disincentive for transnational terror? An empirical analysis

Abstract

Using panel data for a maximum of 109 countries over the years 1976-2000, we empirically analyze the impact of decentralization on the occurrence of transnational terror. Our results show that expenditure decentralization reduces the number of transnational terror events in a country, while political decentralization has no impact. These results are robust to the choice of control variables and method of estimation.Terrorism; Decentralization; Federalism; Governance quality; Government effectiveness