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The Impact of the Iraq War on US Consumer Goods Sales in Arab Countries

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  • Sofronis Clerides

    ()
    (University of Cyprus and CEPR)

  • Peter Davis

    ()
    (UK Competition Commission)

  • Antonis Michis

    ()
    (Central Bank of Cyprus)

Abstract

Did the rise in anti-American sentiment caused by the Iraq war a ect sales of US goods abroad? We address this question using data on sales of soft drinks and fabric detergents in nine Arab countries. We find a statistically significant but modest and short-lived negative impact of the war on sales of US soft drinks in some countries but no impact on the sales of detergents in any country. Variation in aggregate market shares of US products across countries correlates with consumer attitudes toward the US in the soft drink market but not in the detergent market.

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Bibliographic Info

Paper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 25_10.

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Date of creation: Jan 2010
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Handle: RePEc:rim:rimwps:25_10

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Keywords: consumer behavior; consumer boycotts; Iraq war;

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  1. Gary Clyde Hufbauer & Kimberly Ann Elliott & Tess Cyrus & Elizabeth Winston, 1997. "US Economic Sanctions: Their Impact on Trade, Jobs, and Wages," Working Paper Series Working Paper Special (2), Peterson Institute for International Economics.
  2. Bilmes, Linda & Stiglitz, Joseph E., 2006. "The Economic Costs of the Iraq War: An Appraisal Three Years after the Beginning of the Conflict," Working Paper Series rwp06-002, Harvard University, John F. Kennedy School of Government.
  3. Hong Canhui & Hu Wei-Min & Prieger James E. & Zhu Dongming, 2011. "French Automobiles and the Chinese Boycotts of 2008: Politics Really Does Affect Commerce," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-38, May.
  4. Orley Ashenfelter & Stephen Ciccarella & Howard J. Shatz, 2007. "French Wine and the U.S. Boycott of 2003: Does Politics Really Affect Commerce?," NBER Working Papers 13258, National Bureau of Economic Research, Inc.
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