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Terrorism and Trade

Volker Nitsch and Dieter Schumacher

No 353, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: bilateral trade flows between more than 200 countries over the period from 1960 to 1993. Applying an augmented gravity model that includes several measures of terrorism and largescale violence, we find compelling evidence that terrorist actions reduce the volume of trade; a doubling in the number of terrorist incidents is associated with a decrease in bilateral trade by about 4 percent.

Keywords: Terrorism; Conflict; Warfare; Trade (search for similar items in EconPapers)
JEL-codes: F15 F19 (search for similar items in EconPapers)
Pages: 13 p.
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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