Effects of neighboring nation terrorism on imports.
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 s...
| Published in: | Southern Economic Journal Vol. 88; no. 1; pp. 144 - 168 |
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| Main Authors: | , , |
| Format: | Article |
| Published: |
Wiley-Blackwell
Jul2021
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| Summary: | 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. |
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