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Title:Terrorism and trade PDF Logo
Authors:Nitsch, Volker
Schumacher, Dieter
Issue Date:2003
Series/Report no.:DIW-Diskussionspapiere 353
Abstract:This paper examines the effect of terrorism and warfare on international trade. We investigate 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.
Subjects:Terrorism
Conflict
Warfare
Trade
JEL:F19
F15
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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