The Demographic Impact of Terrorism: Evidence from Municipalities in the Basque Country and Navarre
29 Pages Posted: 26 Oct 2016 Last revised: 19 Sep 2017
Date Written: September 13, 2017
This paper studies the persistence of the effects of terrorist attacks on the urban structure at regional level. With this aim, a dynamic differences-in-differences approach is applied to all the municipalities of the Basque Country and Navarre autonomous communities in Spain during 1986-2014. Our results show that terrorism had a negative and transitory effect on population growth. We also find that incidents with deaths implied more adverse shocks. Terrorist attacks had more significant effects in bigger municipalities and in the provinces with a stronger ideological polarization. Finally, we provide evidence of demographic spatial effects derived from violence.
Keywords: Urban Structure, Population Growth, Terrorism, Shock Persistence, Spatial Effects
JEL Classification: J10, N41, N91, R12
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