| ID | 161554 |
| Title Proper | Trade and terrorism |
| Other Title Information | a disaggregated approach |
| Language | ENG |
| Author | Bandyopadhyay, Subhayu |
| Summary / Abstract (Note) | We construct a model of the consequences of terrorism on trade, where firms in trading nations face different costs arising from domestic and transnational terrorism. Using a dyadic dataset in a gravity model, we test terrorism’s effects on overall trade, exports, and imports, while allowing for disaggregation by primary commodities and manufactured goods. While domestic and transnational terrorism have marginal or no significant influence on the overall trade of primary products, both types of terrorism significantly reduce the overall trade of manufactured goods. This novel finding for a global sample indicates the avenue by which terrorism reduces trade and suggests why previous global studies that looked at all trade generally found modest impacts. Moreover, both domestic and transnational terrorism have a detrimental effect on manufactured imports. The larger apparent reduction for transnational terrorism is not statistically different from that of domestic terrorism. A more mixed picture characterizes the effect of terrorism on exports. Domestic terrorism reduces manufactured exports and increases primary exports, while transnational terrorism reduces primary exports. Placebo tests support our hypothesized causality. |
| `In' analytical Note | Journal of Peace Research Vol. 55, No.5; Sep 2018: p. 656-670 |
| Journal Source | Journal of Peace Research Vol: 55 No 5 |
| Key Words | International Trade ; Transnational Terrorism ; Gravity Model ; Domestic Terrorism ; Imports and Exports |