National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries
AbstractDid 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 InfoPaper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 41_13.
Date of creation: Jul 2013
Date of revision:
consumer choice; consumer boycotts; Iraq war;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
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