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Terrorism and Trade

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Author Info
Volker Nitsch
Dieter Schumacher

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Abstract

bilateral trade flows between more than 200 countries over the period from 1960 to 1993. Applying an augmented gravity model that includes several measures of terrorism and largescale violence, we find compelling evidence that terrorist actions reduce the volume of trade; a doubling in the number of terrorist incidents is associated with a decrease in bilateral trade by about 4 percent.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.40608.de/dp353.pdf
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Publisher Info
Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 353.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 13 p.
Date of creation: 2003
Date of revision:
Handle: RePEc:diw:diwwpp:dp353

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Related research
Keywords: Terrorism; Conflict; Warfare; Trade;

Find related papers by JEL classification:
F15 - International Economics - - Trade - - - Economic Integration
F19 - International Economics - - Trade - - - Other

References listed on IDEAS
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.:

  1. Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR, CES, MSH, vol. 15(30), pages 7-46, 04. [Downloadable!] (restricted)
  2. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June. [Downloadable!] (restricted)
  3. Herschel I. Grossman, 2001. "The Creation of Effective Property Rights," American Economic Review, American Economic Association, vol. 91(2), pages 347-352, May. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Bruno Frey & Simon Luechinger & Alois Stutzer, 2004. "Valuing Public Goods: The Life Satisfation Approach," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. S. Brock Blomberg & Gregory Hess, 2004. "How Much Does Violence Tax Trade?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  3. Bruno S. Frey & Simon Luechinger, . "Terrorism: Deterrence May Backfire," IEW - Working Papers iewwp136, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  4. Bruno S. Frey & Simon Luechinger, . "Measuring Terrorism," IEW - Working Papers iewwp171, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  5. Shamit Chakravarti & Rina Bhattacharya & Benedict J. Clements & Sanjeev Gupta, 2002. "Fiscal Consequences of Armed Conflict and Terrorism in Low- and Middle-Income Countries," IMF Working Papers 02/142, International Monetary Fund. [Downloadable!]
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This page was last updated on 2009-12-1.

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