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, Ronald J McGauvran Independent scholar , USA Search for other works by this author on: Oxford Academic Glen Biglaiser University of North Texas , USA Search for other works by this author on: Oxford Academic Lance Y Hunter Augusta University , USA Search for other works by this author on: Oxford Academic Hoon Lee Texas Tech University , USA Search for other works by this author on: Oxford Academic
International Studies Quarterly, Volume 68, Issue 2, June 2024, sqae043, https://doi.org/10.1093/isq/sqae043
Published:
15 April 2024
Article history
Received:
28 February 2022
Revision received:
07 December 2022
Accepted:
08 March 2024
Published:
15 April 2024
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Ronald J McGauvran, Glen Biglaiser, Lance Y Hunter, Hoon Lee, The Effect of Terrorism on Income Inequality, International Studies Quarterly, Volume 68, Issue 2, June 2024, sqae043, https://doi.org/10.1093/isq/sqae043
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Abstract
Conflict research has recently found that increased inequality weakens institutional conditions, opening the door for terrorism. While this research often accounts for endogeneity, or the possibility of a reverse causal relationship, there has yet to be an empirical investigation of the impact of terrorism on income inequality. Using a sample of 139 countries between 1994 and 2018, we show that both domestic and transnational terrorism result in higher levels of income inequality. Our results are consistent for both pre- and post-tax and transfer inequality as well as multiple model specifications. Additionally, we explore multiple potential causal mechanisms that link terrorism and income inequality finding that the effect is, in part, due to terrorism’s negative effects on institutional stability, increased military expenditure, possibly to fund counterterrorism operations, and reduced foreign capital, especially for greenfield investment. Our analysis indicates a positive relationship between terrorism and inequality and the mechanisms that produce the effect, contributing to the terrorism and inequality literatures.
La investigación en materia de conflictos ha concluido recientemente que el aumento de la desigualdad debilita las condiciones institucionales y, en consecuencia, abre la puerta al terrorismo. Si bien estas investigaciones suelen tener en cuenta la endogeneidad, o la posibilidad de una relación causal inversa, no existe aún ninguna investigación empírica acerca del impacto del terrorismo sobre las desigualdades en materia de ingresos. Utilizamos una muestra de 140 países entre 1994 y 2018 y demostramos que el terrorismo, tanto nacional como transnacional, provoca unos mayores niveles de desigualdad de ingresos. Nuestros resultados son consistentes tanto con la desigualdad existente antes y después de impuestos y transferencias, así como con múltiples especificaciones de modelos. Además, exploramos múltiples mecanismos causales potenciales que vinculan el terrorismo con la desigualdad de ingresos, concluyendo que este efecto se debe, en parte: a los efectos negativos del terrorismo sobre la estabilidad institucional, a la disminución del gasto social (posiblemente en favor de financiar operaciones antiterroristas) y a la reducción del capital extranjero, especialmente en materia de inversión de tipo totalmente nuevo. Nuestro análisis señala una relación positiva entre el terrorismo, la desigualdad y los mecanismos que producen este efecto, por lo que este artículo contribuye, de este modo, a la bibliografía sobre terrorismo y desigualdad.
La recherche sur les conflits a récemment conclu que l'augmentation des inégalités affaiblissait les conditions institutionnelles, et donc ouvrait la porte au terrorisme. Bien que cette recherche prenne souvent en compte l'endogénéité, ou la possibilité d'une relation causale inverse, elle ne comprend pas encore d’étude empirique sur les conséquences du terrorisme sur les inégalités de revenus. À l'aide d'un échantillon de 140 pays entre 1994 et 2018, nous montrons que le terrorisme, à la fois national et transnational, entraîne une augmentation des inégalités de revenus. Nos résultats sont cohérents à la fois pour les inégalités de transfert et avant et après impôts, ainsi que vis-à-vis des caractéristiques de modèles multiples. De plus, nous nous intéressons à de nombreux mécanismes causaux qui pourraient potentiellement relier le terrorisme aux inégalités de revenus et observons que l'effet est en partie dû aux effets négatifs du terrorisme sur la stabilité institutionnelle, aux diminutions des dépenses sociales, qui permettraient de financer des opérations de lutte contre le terrorisme, et à une diminution des investissem*nts étrangers, notamment sur site vierge. Notre analyse indique une relation positive entre le terrorisme et les inégalités et les mécanismes qui produisent l'effet. Elle contribue ainsi aux littératures sur le terrorisme et les inégalités.
© The Author(s) (2024). Published by Oxford University Press on behalf of the International Studies Association.
This article is published and distributed under the terms of the Oxford University Press, Standard Journals Publication Model (https://academic.oup.com/journals/pages/open_access/funder_policies/chorus/standard_publication_model)
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