Titelaufnahme

Titel
An injury to one is an injury to all : terrorism's spillover effects on bilateral trade / Cong S. Pham (Deakin University), Hristos Doucouliagos (Deakin University and IZA) ; IZA Institute of Labor Economics
VerfasserPham, Cong S. In der Gemeinsamen Normdatei der DNB nachschlagen ; Doucouliagos, Chris In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, June 2017
Ausgabe
Elektronische Ressource
Umfang1 Online-Ressource (57 Seiten) : Diagramme, Karten
SerieDiscussion paper ; no. 10859
URNurn:nbn:de:hbz:5:2-134828 Persistent Identifier (URN)
Zugriffsbeschränkung
 Das Dokument ist frei verfügbar.
Volltexte
An injury to one is an injury to all [1.31 mb]
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Zusammenfassung

In this paper we investigate whether the effects of terrorism in one country spillover to affect trade in neighboring nations. Using a sample of more than 160 countries from 1976 to 2014, we report robust evidence that terrorist attacks in a nations contiguous neighbors significantly reduce bilateral trade. Each additional terrorist attack in a neighboring country reduces bilateral trade by nearly 0.013% on average, which translates into a reduction of about $6.4 million USD in total trade. Trade effects from terrorist incidents are higher in sub-Sahara. Adverse trade effects hold for different flow and stock measures of terrorism, and even for terrorist incidents with zero casualties. Spillovers from terrorism are relatively long-lived, depressing bilateral trade up to five years after a terrorist event. Our findings are consistent with terrorism adversely impacting bilateral trade through several channels: psychological distress, higher trade costs arising from increased trade insecurity and regulatory burden, and adverse effects on income and trade reform.