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

  • Clerides, Sofronis
  • Davis, Peter
  • Michis, Antonis

Did the rise in anti-American sentiment caused by the Iraq war a ffect 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.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8041.

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Date of creation: Oct 2010
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Handle: RePEc:cpr:ceprdp:8041
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  1. Bilmes, Linda & Stiglitz, Joseph E., 2006. "The Economic Costs of the Iraq War: An Appraisal Three Years after the Beginning of the Conflict," Working Paper Series rwp06-002, Harvard University, John F. Kennedy School of Government.
  2. 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.
  3. 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.
  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.
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