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- Title
Effects of neighboring nation terrorism on imports.
- Authors
Bandyopadhyay, Subhayu; Doucouliagos, Hristos; Pham, Cong S.
- Abstract
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.
- Subjects
TERRORISM; IMPORTS; NEIGHBORS; U.S. dollar
- Publication
Southern Economic Journal, 2021, Vol 88, Issue 1, p144
- ISSN
0038-4038
- Publication type
Article
- DOI
10.1002/soej.12508