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

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  • Sofronis Clerides
  • Peter Davis
  • Antonis Michis

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 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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File URL: http://papers.econ.ucy.ac.cy/RePEc/papers/6-10.pdf
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Bibliographic Info

Paper provided by University of Cyprus Department of Economics in its series University of Cyprus Working Papers in Economics with number 06-2010.

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Length: 26 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:ucy:cypeua:06-2010

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Web page: http://www.econ.ucy.ac.cy

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Keywords: consumer behavior; consumer boycotts; Iraq war.;

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  1. 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.
  2. 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.
  3. 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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