Skip to main content
Swiss Journal of Economics and Statistics
Download PDF

Trade and the Spillovers of Transnational Terrorism

Swiss Journal of Economics and Statistics volume 145, pages 453–461 (2009)Cite this article

Summary

We examine the impact of transnational terrorism diffusion on security and international trade. To counter the diffusion of transnational terrorism, targeted governments implement security measures against countries where terror could potentially diffuse. Since security measures raise trade costs, we argue that countries, close enough to those from where terror originates, should experience negative spillovers on their trade. We find evidence for this hypothesis in our data. We show that the closer a country is to a source of terrorism, the higher the negative spillovers on its trade.

References

  • Cainkar, L. (2004), “The Impact of September 11 Attacks and the Aftermath on Arab and Muslim Communities in the United States”, GSC Quarterly, 13.

  • de Sousa, J., D. Mirza, and T. Verdier (2009), “Trade and Terrorism: Does the Neighbor Hurt”, Mimeo.

  • Disdier, A.C., and K. Head (2008), “The Puzzling Persistence of the Distance Effect on Bilateral Trade”, Review of Economics and Statistics, 90(1), pp. 37–48.

    Article  Google Scholar 

  • Mickolus, E., T. Sandler, J. Murdock, and P. Flemming (2004), International Terrorism: Attributes of Terrorist Events, 1968–2003 (ITERATE 5), Dunn Loring, VA: Vinyard Software.

    Google Scholar 

  • Mirza D., and T. Verdier (2006), “Are Lives Substitute to Livelihoods: Terrorism, Security and US Bilateral Imports”, CEPR working paper 6173.

  • Mirza D., and T. Verdier (2008), “International Trade, Security and Transnational Terrorism: Theory and a Survey of Empirics”, Journal of Comparative Economics, 26 (2), pp. 179–194.

    Article  Google Scholar 

  • Steinberg, G. (2008), “The Islamic Jihad Union”, SWP Comments paper series.

  • Voeten, Erik, and Adis Merdzanovic, “United Nations General Assembly Voting Data”, http://hdl.handle.net/1902.1/12379, (object name UNF:3:Hpf6qOkDdzzvXF9m66yLTg==, accessed 2009).

Download references

Author information

Authors and Affiliations

  1. Maison des Sciences Économiques, 106-112 boulevard de l’Hôpital, 75013, Paris, France

    José de Sousa

  2. Faculté de droit et sciences économiques François Rabelais de Tours, 50 avenue Jean Portalis, 37000, Tours, France

    Daniel Mirza

  3. École normale supérieure, 48 boulevard Jourdan, 75014, Paris, France

    Thierry Verdier

Authors
  1. José de Sousa
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Daniel Mirza
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Thierry Verdier
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to José de Sousa.

Rights and permissions

Open Access This article is distributed under the terms of the Creative Commons Attribution 2.0 International License ( https://creativecommons.org/licenses/by/2.0 ), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Reprints and permissions

About this article

Cite this article

de Sousa, J., Mirza, D. & Verdier, T. Trade and the Spillovers of Transnational Terrorism. Swiss J Economics Statistics 145, 453–461 (2009). https://doi.org/10.1007/BF03399291

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF03399291

JEL-Classification

Keywords