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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/18861
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| Title: | | How much does violence tax trade?  |
| Authors: | | Blomberg, S. Brock Hess, Gregory D. |
| Issue Date: | | 2004 |
| Series/Report no.: | | CESifo working papers 1222 |
| Abstract: | | We investigate the empirical impact of violence as compared to other trade impediments on trade flows. Our analysis is based on a panel data set with annual observations on 177 countries from 1968 to 1999, which brings together information from the Rose [2004] dataset, the ITERATE dataset for terrorist events, and datasets of external and internal conflict. We explore these data with traditional and theoretical gravity models. We calculate that, for a given country year, the presence of terrorism, as well as internal and external conflict is equivalent to as much as a 30 percent tariff on trade. This is larger than estimated tariffequivalent costs of border and language barriers and tariff-equivalent reduction through GSPs and WTO participation. |
| Subjects: | | trade conflict terrosism |
| JEL: | | D74 E6 H5 H1 O11 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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