Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18089 
Year of Publication: 
2003
Series/Report no.: 
DIW Discussion Papers No. 353
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
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

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