Terrorism Financing, Recruitment and Attack

Working Paper
Published on 1 May 2020
Authors
Nicola Limodio

Abstract

In this paper, Limodio (2020) investigates the effect of terrorism financing and recruitment on attacks. A Sharia-compliant institution in Pakistan induces exogenous variation in the funding of terrorist groups through their religious affiliation. The supply of terrorist attacks is isolated by following multiple terrorist groups with different affiliations operating in various cities. Higher terrorism financing, in a given location and period, generates more attacks in the same location and period. This effect increases in recruitment, measured through dark-web data, inputs by two judges and machine-learning. This evidence is consistent with terrorist organizations facing financial frictions to their internal capital market.

Authors

Nicola Limodio

Universita' Bocconi