Willingness and Opportunity: A Study of Domestic Terrorism in Post-Cold War South Asia

Domestic terrorism, as a form of intrastate violence, has varied widely in South Asia along with the post-Cold War period of global economic integration and political openness. How are these two phenomena—economic integration and emergence of democracies—related to domestic terrorism in South Asia? I argue that resorting to terrorism is a rational choice when individuals'/groups' cost of heterogeneity—deprivation from public goods due to geographical and ideological distance—increases; opportunity is provided by democratization and integration into the global economy. The testable hypotheses derived from the theory are empirically tested on a dataset of five South Asian countries for the time period between 1990 and 2007. The results show that both minority discrimination and presence of unconsolidated democratic institutions increase terrorism in the highly heterogeneous South Asian countries. International trade in the presence of minority discrimination increases homegrown terrorism, but foreign direct investment neither increases nor decreases such incidents.