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National Sentiment and Consumer Choice: The Iraq War and Sales of US Products 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 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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    References listed on IDEAS

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    1. 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, March.
    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. 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.
    4. Ashenfelter, Orley & Ciccarella, Stephen & Shatz, Howard J., 2007. "French Wine and the U.S. Boycott of 2003: Does Politics Really Affect Commerce?," Journal of Wine Economics, Cambridge University Press, vol. 2(01), pages 55-74, March.
    5. 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, September.
    6. 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, pages 1-38.
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    Cited by:

    1. 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, pages 185-218.
    2. 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, pages 185-218.
    3. Daniel Levy & Avichai Snir, 2017. "Potterian Economics," Working Papers 002-17 JEL Codes: A13, A1, International School of Economics at TSU, Tbilisi, Republic of Georgia.
    4. 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.
    5. Hendel, Igal E & Lach, Saul & Spiegel, Yossi, 2015. "Consumers' Activism: the Facebook boycott of Cottage Cheese," CEPR Discussion Papers 10460, C.E.P.R. Discussion Papers.

    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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