THE EFFECTS OF ECONOMIC AND POLITICAL FACTORS ON TERRORISM: AN AGGREGATED PANEL ANALYSIS.

This paper investigates, in an aggregate sense, the possible effects of some economic and political factors on terrorism. Terrorism is represented by two measurable variables: terror incidents and the number of fatalities. Most economic and political factors affect both terror incidents and the number of fatalities significantly. Countries with higher FDI, higher trade volume, higher urbanization rate, higher GDP per capita, and higher education expenditures face smaller number of terror incidents. Countries with higher population, higher income inequality, higher unemployment, and higher military expenditures experience a higher number of terror incidents. [ABSTRACT FROM AUTHOR]