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Under Attack: Terrorism and International Trade in France, 2014-16

Nitsch, Volker ; Rabaud, Isabelle (2021)
Under Attack: Terrorism and International Trade in France, 2014-16.
doi: 10.26083/tuprints-00018609
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Item Type: Report
Type of entry: Primary publication
Title: Under Attack: Terrorism and International Trade in France, 2014-16
Language: English
Date: 2021
Place of Publication: Darmstadt
Series: Darmstadt Discussion Papers in Economics
Series Volume: 241
Collation: 35 Seiten
DOI: 10.26083/tuprints-00018609
Abstract:

Terrorist events typically vary along many dimensions, making it difficult to identify their economic effects. This paper analyzes the impact of terrorism on international trade by examining a series of three large-scale terrorist incidents in France over the period from January 2015 to July 2016. Using firm-level data at monthly frequency, we document an immediate and lasting decline in cross-border trade after a mass terrorist attack. According to our estimates, France’s trade in goods, which accounts for about 70 percent of the country’s trade in goods and services, is reduced by more than 6 billion euros in the first six months after an attack. The reduction in trade mainly takes place along the intensive margin, with particularly strong effects for partner countries with low border barriers to France, for firms with less frequent trade activities and for homogeneous products. A possible explanation for these patterns is an increase in trade costs due to stricter security measures.

Status: Publisher's Version
URN: urn:nbn:de:tuda-tuprints-186090
Additional Information:

JEL Classification Codes: F14; F52 Keywords: shock; insecurity; uncertainty; terrorism; international trade; France

Classification DDC: 300 Social sciences > 330 Economics
Divisions: 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > International Economics
Date Deposited: 26 May 2021 08:05
Last Modified: 26 May 2021 08:05
URI: https://tuprints.ulb.tu-darmstadt.de/id/eprint/18609
PPN: 479653402
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