International terrorism as a trade impediment?

Peter Egger and Martin Gassebner

Oxford Economic Papers, 2015, vol. 67, issue 1, 42-62

Abstract: This article uses monthly data on bilateral trade in conjunction with monthly data on terrorism events and associated fatalities to shed light on the impact of terrorism on trade. Employing a structural model of trade, we provide evidence that, if at all, international terrorism displays effects on bilateral and multilateral trade only in the medium run (more than one and a half years after an attack/incident). The pure short-run impact of international terror on trade appears very small, if not negligible.

Date: 2015
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