Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/171157 
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper No. 6693
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We investigate the effect of U.S. military aid and U.S. troop deployments on anti-American terrorism, using a sample of 106 countries between 1986 and 2011. We find that greater military commitment leads to more anti-American terrorism. We study the underlying mechanisms using a mediation analysis and show that both U.S. military aid and troop deployments in foreign countries do not improve local state capacity. Rather, we find that more military aid (but not troop deployments) is linked to poorer political-institutional outcomes in aid-receiving countries, explaining the positive association between U.S. military aid and anti-American terrorism. Our findings suggest that U.S. military policy does not make the United States safer from transnational terrorism.
Subjects: 
U.S. military aid
U.S. troop deployments
anti-American terrorism
transnational terrorism
mediation analysis
JEL: 
D74
F35
F50
Document Type: 
Working Paper
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