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National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries

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Author Info

  • Sofronis Clerides

    ()
    (University of Cyprus, Cyprus; CEPR, UK)

  • Peter Davis

    ()
    (Compass Lexecon, UK)

  • Antonis Michis

    ()
    (Central Bank of Cyprus, 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 soft drink and fabric detergent sales in nine Arab countries. We nd a statistically signi cant negative impact of the war on sales of US soft drinks in seven countries. The impact dissipates after a few months in two countries but persists in the other ve. In the case of detergents we only nd a signi cant negative impact in one country. We conclude that international politics can sometimes a ect consumer behavior and impact market outcomes.

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Bibliographic Info

Paper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 41_13.

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Date of creation: Jul 2013
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Handle: RePEc:rim:rimwps:41_13

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Keywords: consumer choice; consumer boycotts; Iraq war;

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  1. 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.
  2. Charles A. Rarick, 2007. "Economic Sanctions: Failed Foreign Policy Tool And A Cost To American Business," Economic Affairs, Wiley Blackwell, vol. 27(3), pages 65-70, 09.
  3. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 7-45, 03.
  4. 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.
  5. 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.
  6. Raymond Fisman & Edward Miguel, 2007. "Corruption, Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 1020-1048, December.
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