Terrorism, Trade and Public Policy
AbstractAre bigger markets safer? How should government policy respond to terrorist threats? Trade draws potential terrorists and economic predators into productive activity, but trade also draws terrorist attacks. Larger trade reduces the risk of terrorist attack when the wage elasticity is high, associated with low ratios of predators to prey and high wages; but it may increase the risk of terrorist attack when the wage elasticity is low, associated with high ratios of predators to prey. Anti-terrorist trade policy should always promote trade in simultaneous play. Government first mover advantage and inelastic wage may imply trade restriction. Tolerance of smuggling may improve security. Better enforcement should ordinarily be provided for bigger, inherently safer and higher wage markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 701.
Date of creation: 01 Dec 2008
Date of revision:
Contact details of provider:
Postal: Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA
Web page: http://fmwww.bc.edu/EC/
More information through EDIRC
terrorism; trade; policy; predation; smuggling;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michelle R. Garfinkel & Stergios Skaperdas & Constantinos Syropoulos, 2006.
"Globalization and Domestic Conflict,"
050601, University of California-Irvine, Department of Economics.
- Michelle R. Garfinkel & Stergios Skaperdas & Constantinos Syropoulos, 2005. "Globalization and Domestic Conflict," CESifo Working Paper Series 1510, CESifo Group Munich.
- Michelle R. Garfinkel & Stergios Skaperdas & Constantinos Syropoulos, 2005. "Globalization and Domestic Conflict," International Trade 0507005, EconWPA.
- James E. Anderson & Eric van Wincoop, 2004.
NBER Working Papers
10480, National Bureau of Economic Research, Inc.
- Mirza, Daniel & Verdier, Thierry, 2007.
"Are Lives a Substitute for Livelihoods? Terrorism, Security and US Bilateral Imports,"
CEPR Discussion Papers
6173, C.E.P.R. Discussion Papers.
- Mirza, Daniel & Verdier, Thierry, 2006. "Are lives a substitute for livelihoods ? Terrorism, security, and U.S. bilateral imports," Policy Research Working Paper Series 4094, The World Bank.
- James E. Anderson, 2006.
"Commercial Policy in a Predatory World,"
NBER Working Papers
12576, National Bureau of Economic Research, Inc.
- repec:ags:afjare:141665 is not listed on IDEAS
- Mirza, Daniel & Verdier, Thierry, 2006.
"International trade, security, and transnational terrorism : theory and empirics,"
Policy Research Working Paper Series
4093, The World Bank.
- Mirza, Daniel & Verdier, Thierry, 2007. "International Trade, Security and Transnational Terrorism: Theory and Empirics," CEPR Discussion Papers 6174, C.E.P.R. Discussion Papers.
- Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall.
- James E. Anderson, 2003.
"Traders, Cops and Robbers,"
NBER Working Papers
9572, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F Baum).
If references are entirely missing, you can add them using this form.