Terrorist attacks and total factor productivity

Seongjae Mun, Seung Hun Han and Hyeong Joon Kim

Economics Letters, 2021, vol. 202, issue C

Abstract: This study examines the impact of terrorist attacks on total factor productivity (TFP). Using measures of attack proximity in the U.S., we find strong evidence that terrorist attacks overall reduce firm-level TFP. Specifically, the firms located near terrorist attacks experience a nearly 3.4% TFP decrease in standard deviation units. Our evidence is robust to a battery of additional tests, and the impact of terrorist attacks on TFP is more pronounced for high-competition industries and firms with high tangibility.

Keywords: Terrorist attacks; Total factor productivity (search for similar items in EconPapers)
JEL-codes: D24 G30 H56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:202:y:2021:i:c:s0165176521000859

DOI: 10.1016/j.econlet.2021.109808

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