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In this paper we develop an empirical model for transnational terrorist activity for a panel consisting of 139 countries over the period 1985-1998. Essentially, we attempt to sketch the profile of the average terrorist attack venue. Our findings suggest that the terrorist attack venue is, on average, characterized by low economic openness, high demographic stress, and a high level of international disputes. Furthermore, we document a strong regional component suggesting the presence of infectious contagion on a spatial level. Our results also support the presence of addictive contagion captured by a strong autoregressive component in each country's terrorist activity. Finally, we find a weak statistical link between the level of democracy and terrorist activity, although the level of democracy is a significant determinant of the potential under-reporting bias of terrorist activity.
Δράκος et al. (Fri,) studied this question.