1. When Development Goes Wrong Sarah Averill

2. What is the Relationship Between Terrorism and Economic Development?

3. Literature Review: Causes of Terrorism UnderdevelopmentDevelopment

4. Literature Review: Effects of Terrorism States that host terrorist organizations are less stable, driving out foreign investment and hindering development States where attacks occur suffer as well –Infrastructure, shops, businesses destroyed –Tourism industry suffers

5. Methodology Domain: 1990-2002, all countries with at least one terrorist attack during those years Model 1 –Dependent Variable Economic Growth –Independent Variables # of terrorist attacks # of deaths due to terrorism GNI per capita Population Model 2 –Dependent Variable Number of Attacks –Independent Variables Economic Growth GNI per capita Male unemployment

6. Hypotheses Model 1 –A high level of terrorism will lead to a low level of economic growth Model 2 –A high level of economic growth, combined with a low level of unemployment, will lead to a low level of terrorism

7. Findings Model 1 –Model is significant Sig=.046 –BUT the only variable that is significant is population Model 2 –Model is not significant Sig=.220 –BUT unemployment IS significant

8. Findings Same models, using only the data for developing countries –Model 2 IS significant Sig=.000, R squared=.134 –Unemployment and GNI are significant

9. Conclusion There is a causal relationship between the level of development and the level of terrorism in a country –This supports the literature which says that underdevelopment causes terrorism There is no significant causal relationship between terrorism and development

10. Further Research Expand study to include more years Cross cultural and regional studies to see if the global trends hold in different regions Addition variables, such as income distribution and political participation to create a more workable model to explain terrorism