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. Combining novel data and quasi-experimental variation from a natural experiment in Pakistan, I find evidence of causal relationships between terrorism financing, recruitment, and local attacks. The work demonstrates the benefits of financial counterterrorism and provides insights to design future policies. This study builds the foundations for my ongoing work evaluating the influence of terrorist activities on local firms, specifically their credit quality, investments, and growth.
