Effects of neighboring nation terrorism on imports

Subhayu Bandyopadhyay, Chris Doucouliagos and Cong Pham

Southern Economic Journal, 2021, vol. 88, issue 1, 144-167

Abstract: We consider the effects of terrorism in a home nation and in its neighbors on the home nation's imports. We find that a 10% increase in terrorist attacks in a neighboring nation reduces a country's imports from the rest of the world by approximately $320 million USD, on average. Mediation analysis shows that trading delays is a potential channel of transmission of trade costs of terrorism to a neighbor. We also present a monopolistically competitive theoretical model to throw light on our empirical results.

Date: 2021
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https://doi.org/10.1002/soej.12508

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Working Paper: Effects of Neighboring Nation Terrorism on Imports (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:88:y:2021:i:1:p:144-167

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