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

Volker Nitsch and Isabelle Rabaud ()

VfS Annual Conference 2020 (Virtual Conference): Gender Economics from Verein für Socialpolitik / German Economic Association

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. 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.

Keywords: shock; insecurity; uncertainty (search for similar items in EconPapers)
JEL-codes: F14 F52 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-int
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https://www.econstor.eu/bitstream/10419/224652/1/vfs-2020-pid-40566.pdf (application/pdf)

Related works:
Working Paper: Under Attack: Terrorism and International Trade in France, 2014-16 (2021)
Working Paper: Under Attack: Terrorism and International Trade in France, 2014-16 (2021)
Working Paper: Under Attack: Terrorism and International Trade in France, 2014-16 (2021)
Working Paper: Under attack: Terrorism and international trade in France, 2014-16 (2021)
Working Paper: Under Attack: Terrorism and International Trade in France, 2014-16 (2019)
Working Paper: Under Attack: Terrorism and International Trade in France, 2014-16 (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc20:224652

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