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

Author

Listed:
  • 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 affect sales of US goods abroad? We address this question using data on soft drink and fabric detergent sales in nine Arab countries. We find a statistically significant 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 five. In the case of detergents we only find a significant negative impact in one country. We conclude that international politics can sometimes affect consumer behavior and impact market outcomes.

Suggested Citation

  • Sofronis Clerides & Peter Davis & Antonis Michis, 2013. "National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries," Working Paper series 41_13, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:41_13
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Shi, Wei & Wei, Jingran, 2023. "In the crossfire: Multinational companies and consumer boycotts," China Economic Review, Elsevier, vol. 77(C).
    3. Daniel Levy & Avichai Snir, 2022. "Potterian economics," Oxford Open Economics, Oxford University Press, vol. 1, pages 1-32.
    4. Igal Hendel & Saul Lach & Yossi Spiegel, 2017. "Consumers' activism: the cottage cheese boycott," RAND Journal of Economics, RAND Corporation, vol. 48(4), pages 972-1003, December.
    5. Cuadras-Morató Xavier & Raya Josep Maria, 2016. "Boycott or Buycott?: Internal Politics and Consumer Choices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(1), pages 185-218, January.
    6. In Kyung Kim & Kyoo il Kim, 2024. "Corporate social responsibility and consumer choice: Lessons from the milk boycott," Working Papers 2401, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    7. Heilmann, Kilian, 2016. "Does political conflict hurt trade? Evidence from consumer boycotts," Journal of International Economics, Elsevier, vol. 99(C), pages 179-191.
    8. Ahn, JaeBin & Greaney, Theresa M. & Kiyota, Kozo, 2022. "Political conflict and angry consumers: Evaluating the regional impacts of a consumer boycott on travel services trade," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    9. In Kyung Kim & Kyoo il Kim, 2022. "No Beer No Friends: Quantifying the Effect of the Beer Boycott," Journal of Industrial Economics, Wiley Blackwell, vol. 70(3), pages 711-751, September.
    10. Margaryta Klymak, 2017. "The Trade Impacts of the Naming and Shaming of Forced and Child Labor," Trinity Economics Papers tep1517, Trinity College Dublin, Department of Economics.
    11. Klymak, Margaryta, 2023. "The trade effects of information provision about forced and child labor," World Development, Elsevier, vol. 167(C).
    12. Zijun Luo & Yonghong Zhou, 2020. "Decomposing the effects of consumer boycotts: evidence from the anti-Japanese demonstration in China," Empirical Economics, Springer, vol. 58(6), pages 2615-2634, June.

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    More about this item

    Keywords

    consumer choice; consumer boycotts; Iraq war;
    All these keywords.

    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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