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Trade, tariffs and terrorism

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  • Peter Berck
  • Jonathan Lipow

Abstract

Insurgencies and terrorist activities are often dependent on foreign sources of funding. When this is the case, trade barriers such as import tariffs can prove to be an effective means of combating violence and enhancing social welfare. In this article, we identify the optimal tariff for a country facing an externally financed insurgency.

Suggested Citation

  • Peter Berck & Jonathan Lipow, 2012. "Trade, tariffs and terrorism," Applied Economics Letters, Taylor & Francis Journals, vol. 19(18), pages 1847-1849, December.
    • Handle: RePEc:taf:apeclt:v:19:y:2012:i:18:p:1847-1849
    DOI: 10.1080/13504851.2012.667543
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    References listed on IDEAS

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    1. Eli Berman & Jacob N. Shapiro & Joseph H. Felter, 2011. "Can Hearts and Minds Be Bought? The Economics of Counterinsurgency in Iraq," Journal of Political Economy, University of Chicago Press, vol. 119(4), pages 766-819.
    2. Christopher Foote & William Block & Keith Crane & Simon Gray, 2004. "Economic Policy and Prospects in Iraq," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 47-70, Summer.
    3. Peter Berck & Jonathan Lipow, 2010. "Did Monetary Forces Help Turn the Tide in Iraq?," Defense & Security Analysis, Taylor & Francis Journals, vol. 26(2), pages 181-188, June.
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