How Much Does Violence Tax Trade?
By S. Blomberg, Gregory D. Hess. Review of Economics and Statistics, 2004
333 citations recorded by the source corpus.
Abstract We investigate the empirical effect of violence, as compared to other trade impediments, on trade flows. Our analysis is based on a panel data set with annual observations on 177 countries from 1968 to 1999, which brings together information from the Rose data set, the iterate data set for terrorist events, and data sets of external and internal conflict. We explore these data with traditional and theoretical gravity models. We calculate that, for a given country year, the presence of terrorism together with internal and external conflict is equivalent to as much as a 30% tariff on trade. This is larger than estimated tariff-equivalent costs of border and language barriers and tariff-equivalent reduction through generalized systems of preference and WTO participation.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/cbce8bd4a4be0e31c423b8c4230c2100f2069950
Citations in the corpus
- TERRORISM AND INTERNATIONAL TOURISM: NEW EVIDENCE (2008, neutral): “On the microeconomic side, research has concentrated on the analysis of the impact on specific industries (such us tourism), international trade (Nitsch and Schumacher, 2004 or Blomberg and Hess, 2006) and foreign direct investment (Enders and Sandler, 1993b or Abadie and Gardeazabal, 2005).”
- Make Trade not War (2008, neutral): “These papers, however, do not test models in which trade and war are both endogenous.3 In economics, related empirical papers on the issue are recent papers by Blomberg and Hess (2006) and Glick and Taylor (2005).”
- The Geography of Conflicts and Regional Trade Agreements (2012, neutral): “This trade disrupting effect of war is empirically well grounded (Blomberg and Hess 2006; Martin et al. 2008a; Glick and Taylor 2010).”
- Causal Linkages Between Domestic Terrorism and Economic Growth (2011, neutral): “Empirical evidence indicates that terrorism adversely influences international trade (Nitsch and Schumacher, 2004; Blomberg and Hess, 2006; Mirza and Verdier, 2008).4 Its unfavorable impact on tourism is well-documented, in particular for several Mediterranean countries (Enders and Sandler, 1991;…”