An open access version of this article is available here from Econometrica.
Abstract
This paper investigates the effect of terrorism financing and recruitment on attacks. I exploit a Sharia-compliant institution in Pakistan, which induces unintended and quasi-experimental variation in the funding of terrorist groups through their religious affiliation. The results indicate that higher terrorism financing, in a given location and period, generate more attacks in the same location and period. Financing exhibits a complementarity in producing attacks with terrorist recruitment, measured through data from Jihadist-friendly online fora and machine learning. A higher supply of terror is responsible for the increase in attacks and is identified by studying groups with different affiliations operating in multiple cities. These findings are consistent with terrorist organizations facing financial frictions to their internal capital market.
In response to the Covid-19 crisis, 186 countries implemented direct cash transfers to households, and 181 introduced in-kind programs that lowered the cost of utilities such as electricity, water, transport, and mobile money.
Organizational and managerial structure plays an important role in the productivity difference among firms. However, studies that assessed the quality of firm management and its link with their performance are still scanty.
Research suggests that partisanship and social media usage correlate with belief in COVID-19 misinformation, and that misinformation shapes citizens’ willingness to get vaccinated.
We document the trajectory of SMEs in Burkina Faso between 2020 and 2022, which were affected not only by the global Covid-19 shock, but also by several negative local shocks: two coups took place in 2022, in the context of increasing frequent terrorist attacks.
Multinationals in the extractive sectors of weak states face resource theft by armed groups. This criminality is often abetted by state corruption, even though firms are willing to pay for protection.
This study examines how the timing and location of terrorism financing relates to terrorist attacks and whether there is a link between financing and recruitment in generating attacks.