Empirical Investigation into the Determinants of Terrorism: Evidence from Fragile States

Abstract

This study investigates the determinants of terrorism in countries that are in the top category of the Fragile States Index (FSI), and are also prone to terrorism. Panel data for 38 countries mainly from Sub-Saharan Africa, the Middle East and North Africa, and South Asia for the years 2005–2014 are used. Findings from the negative binomial and fixed effects estimation show that fragile state, number of refugees and youth unemployment have positive and significant impacts on terrorism. Military spending is positive but less robust across models. Conversely, FDI and remittances have a negative impact on terrorism with the former less robust. Governance and foreign aid are negative and insignificantly related to terrorism. Policy implications follow from the findings.