National Security and International Trade
AbstractThe September 11, 2001 terrorist attack to the twin towers and ensuing heightened national security measures worldwide, but particularly in the United States, are modeled to be equivalent to a thickening of trade barriers in international trade. By estimating a gravity model with a stochastic frontier technique, an effective trade barrier is quantified by â€œtrade inefficiency,â€ that is by the difference between potential trade and actual trade; this is done both for country pairs and for a given country vis-Ã -vis all of its trading partners. The impact of higher security levels on trade is examined through hypothetical increases in border thickness, for given values of control variables
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 744.
Date of creation: 11 Aug 2004
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Gravity model; political relations; stochastic frontier estimation; trade barriers;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
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