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Terrorism and Trade

Author

Listed:
  • Volker Nitsch
  • Dieter Schumacher

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.

Suggested Citation

  • Volker Nitsch & Dieter Schumacher, 2003. "Terrorism and Trade," Discussion Papers of DIW Berlin 353, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp353
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.40608.de/dp353.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bruno S. Frey & Simon Luechinger, "undated". "Terrorism: Deterrence May Backfire," IEW - Working Papers 136, Institute for Empirical Research in Economics - University of Zurich.
    2. Turvey, Calum G. & Onyango, Benjamin M. & Hallman, William K. & Condry, Sarah C., 2007. "Consumers' Perception of Food-System Vulnerability to an Agroterrorist Attack," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(3), pages 1-18.
    3. Bruno S. Frey & Simon Luechinger & Alois Stutzer, "undated". "Valuing Public Goods: The Life Satisfaction Approach," IEW - Working Papers 184, Institute for Empirical Research in Economics - University of Zurich.
    4. Bruno S. Frey & Simon Luechinger, 2005. "Measuring terrorism," Chapters, in: Alain Marciano & Jean-Michel Josselin (ed.), Law and the State, chapter 6, Edward Elgar Publishing.
    5. Barnes, Paul & Oloruntoba, Richard, 2005. "Assurance of security in maritime supply chains: Conceptual issues of vulnerability and crisis management," Journal of International Management, Elsevier, vol. 11(4), pages 519-540, December.
    6. Mr. Benedict J. Clements & Mr. Sanjeev Gupta & Shamit Chakravarti & Ms. Rina Bhattacharya, 2002. "Fiscal Consequences of Armed Conflict and Terrorism in Low- and Middle-Income Countries," IMF Working Papers 2002/142, International Monetary Fund.
    7. Saima Sarwar & Muhammad Wasif Siddiqi & Abdul Nasir & Zahoor Ahmed, 2016. "New Direction to Evaluate the Economic Impact of Peace for Bilateral Trade among World Economies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 725-740.
    8. Gupta, Sanjeev & Clements, Benedict & Bhattacharya, Rina & Chakravarti, Shamit, 2004. "Fiscal consequences of armed conflict and terrorism in low- and middle-income countries," European Journal of Political Economy, Elsevier, vol. 20(2), pages 403-421, June.
    9. Abdelbaki, Professor Hisham, 2013. "The Arab spring: do we need a new theory?," MPRA Paper 54801, University Library of Munich, Germany, revised 2013.
    10. Amar Iqbal Anwar & Mazhar Mughal, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working Papers hal-01885149, HAL.
    11. Jacques Fontanel, 2010. "Un concept élargi de la sécurité économique," Post-Print hal-02043679, HAL.

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    More about this item

    Keywords

    Terrorism; Conflict; Warfare; Trade;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F19 - International Economics - - Trade - - - Other

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