We study the effect of the illicit drug business on terrorism for a sample of 58 countries for the 1984-2007 period. Consistent with the notion of a crime-terror nexus, we find that in the long run, higher drug prices are associated with more terrorism. In the short run, however, increases in drug prices lead to less terrorism, potentially because terrorist groups respond to higher drug business attractiveness by prioritizing criminal over terrorist activity.
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Queen Mary Univ London, Sch Business & Management, Bancroft Bldg,Mile End Rd, London E1 4NS, EnglandQueen Mary Univ London, Sch Business & Management, Bancroft Bldg,Mile End Rd, London E1 4NS, England
Yfanti, S.
Karanasos, M.
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Brunel Univ London, London, EnglandQueen Mary Univ London, Sch Business & Management, Bancroft Bldg,Mile End Rd, London E1 4NS, England
Karanasos, M.
Wu, J.
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Brunel Univ London, London, EnglandQueen Mary Univ London, Sch Business & Management, Bancroft Bldg,Mile End Rd, London E1 4NS, England
Wu, J.
Vourvachis, P.
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Loughborough Univ, Loughborough, EnglandQueen Mary Univ London, Sch Business & Management, Bancroft Bldg,Mile End Rd, London E1 4NS, England
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Seoul Natl Univ Sci & Technol, Grad Sch Energy & Environm, Dept Energy Policy, Seoul 139743, South KoreaSeoul Natl Univ Sci & Technol, Grad Sch Energy & Environm, Dept Energy Policy, Seoul 139743, South Korea
Lim, Kyoung-Min
Lim, Seul-Ye
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Seoul Natl Univ Sci & Technol, Grad Sch Energy & Environm, Dept Energy Policy, Seoul 139743, South KoreaSeoul Natl Univ Sci & Technol, Grad Sch Energy & Environm, Dept Energy Policy, Seoul 139743, South Korea
Lim, Seul-Ye
Yoo, Seung-Hoon
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Seoul Natl Univ Sci & Technol, Grad Sch Energy & Environm, Dept Energy Policy, Seoul 139743, South KoreaSeoul Natl Univ Sci & Technol, Grad Sch Energy & Environm, Dept Energy Policy, Seoul 139743, South Korea