Working Paper

Terror Externalities and Trade: An Empirical Analysis

Abstract: We report robust evidence of adverse cross-border externalities from terrorism on trade for over 160 countries from 1976 to 2014. Terrorism in one country spills over to reduce trade in neighboring nations. These externalities arise from higher trade costs due to trade delays and macroeconomic uncertainty.

Keywords: Terrorism; Spillovers; Bilateral imports;

JEL Classification: D74; F14; H56;

Status: Published in Southern Economic Journal

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 2019-05-29

Number: 2019-17

Note: Publisher DOI:

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