EconPapers    
Economics at your fingertips  
 

Terrorism Networks and Trade: Does the Neighor Hurt?

José de Sousa (), Daniel Mirza () and Thierry Verdier ()

Working Papers from CEPII research center

Abstract: We study the impact of transnational terrorism diffusion on security and trade. We set a simple theoretical model predicting that the closer a country to a source of terrorism, the higher the negative spillovers on its trade. The idea is that security measures, which impede trade, are directed both against the source country of terror and its neighbor countries where terrorism may diffuse. In contrast, we demonstrate that countries located far from terror could benefit from an increase in security by trading more. Taken to the test, we empirically document these predictions. We find (1) a direct negative impact of transnational terrorism on trade; (2) an indirect negative impact emanating from terrorism of neighbor countries; and (3) that trade is increasing with remoteness to terror. These results are robust to various definitions of the neighboring relationships among countries.

Keywords: Terrorism; Trade; Security (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2010-03
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.cepii.fr/PDF_PUB/wp/2010/wp2010-04.pdf (application/pdf)

Related works:
Working Paper: Terrorism Networks and Trade: Does the Neighbor Hurt? (2010) Downloads
Working Paper: Terrorism Networks and Trade: Does the Neighbor Hurt? (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2010-04

Access Statistics for this paper

More papers in Working Papers from CEPII research center Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-03-29
Handle: RePEc:cii:cepidt:2010-04