Chere can be little doubt that a complete understanding of international terrorism requires a multidisciplinary approach. Individual disciplines such as psychology, sociology, political science, international relations and religious studies can all make important contributions. Having said this, international terrorism has also been receiving closer attention from economists, and it is from this perspective that we examine it in this paper. What are the trends in terrorism? What causes it? What are the consequences? And what may be done to abate it?
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