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The Impact of the Iraq War on US Consumer Goods Sales in Arab Countries

Peter Davis (), Sofronis Clerides and Antonis Michis ()

No 8041, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Did the rise in anti-American sentiment caused by the Iraq war a ffect sales of US goods abroad? We address this question using data on soft drink and fabric detergent sales in nine Arab countries. We find a statistically significant negative impact of the war on sales of US soft drinks in seven countries. The impact dissipates after a few months in two countries but persists in the other five. In the case of detergents we only find a significant negative impact in one country. We conclude that international politics can sometimes affect consumer behavior and impact market outcomes.

Keywords: Consumer behavior; Consumer boycotts; Iraq war (search for similar items in EconPapers)
JEL-codes: D01 D12 L66 (search for similar items in EconPapers)
Date: 2010-10
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