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

Author

Listed:
  • 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 soft drinks and fabric detergents 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 market outcomes.

Suggested Citation

  • Sofronis Clerides & Peter Davis & Antonis Michis, 2015. "National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 829-851, July.
    • Handle: RePEc:bla:scandj:v:117:y:2015:i:3:p:829-851
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    File URL: http://hdl.handle.net/10.1111/sjoe.12112
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    Cited by:

    1. 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).
    2. Alexis Antoniades & Sofronis Clerides & Mingzhi Xu, 2023. "Micro‐responses to shocks: pricing, promotion, and entry," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(3), pages 584-615, July.
    3. Pablo A. Peña & Saidé Salazar & Carlos Serrano, 2022. "Trump’s wall and gourmet coffee sales: The effect of a consumer boycott in Mexico," Economics and Politics, Wiley Blackwell, vol. 34(1), pages 113-141, March.
    4. Shi, Wei & Wei, Jingran, 2023. "In the crossfire: Multinational companies and consumer boycotts," China Economic Review, Elsevier, vol. 77(C).
    5. 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.
    6. Taralashvili, Tamar, 2024. "How interstate soft conflicts affect bilateral migration: Results from a structural gravity model," International Economics, Elsevier, vol. 179(C).
    7. In Kyung Kim, 2023. "Country Image and Consumer Choice: The Case of the Beer Market during the COVID‐19 Pandemic," Journal of Industrial Economics, Wiley Blackwell, vol. 71(4), pages 1090-1120, December.
    8. Hadjiyiannis, Costas & İriş, Doruk & Tabakis, Chrysostomos & Ten, Gi Khan, 2025. "Are nationalist countries more protectionist?," World Development, Elsevier, vol. 196(C).
    9. 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.
    10. Klymak, Margaryta, 2023. "The trade effects of information provision about forced and child labor," World Development, Elsevier, vol. 167(C).
    11. Grover, Arti & Vézina,Pierre-Louis, 2025. "Geopolitical Fragmentation and Friendshoring : Evidence from Project-Level Foreign Investment Data," Policy Research Working Paper Series 11149, The World Bank.
    12. 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).
    13. 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.
    14. Heilmann, Kilian, 2016. "Does political conflict hurt trade? Evidence from consumer boycotts," Journal of International Economics, Elsevier, vol. 99(C), pages 179-191.
    15. Kurmann, André & Lalé, Etienne & Martin, Julien, 2026. "When neighbours stop knocking: The impact of Canada's 2025 tourism decline on U.S. local labour markets," CLEF Working Paper Series 94, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    16. Amogh Talan & Shemphang Wann Lyngdoh & Sunil & Pragyendu Yaduvanshi & Madhu Gahlot, 2025. "The Psychological Dynamics of Consumer Sacrifices in Times of Inter‐Country Conflict," World Affairs, John Wiley & Sons, vol. 188(3), July.
    17. Tamar Taralashvili, 2024. "The impact of interstate soft conflicts on bilateral trade flows using structural gravity model," The World Economy, Wiley Blackwell, vol. 47(5), pages 1943-1977, May.
    18. 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.
    19. Daniel Levy & Avichai Snir, 2022. "Potterian economics," Oxford Open Economics, Oxford University Press, vol. 1, pages 1-32.
    20. 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.

    More about this item

    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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