How much does violence tax trade?

Arbeitspapier

We investigate the empirical impact 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 [2004] dataset, the ITERATE dataset for terrorist events, and datasets 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, as well as internal and external conflict is equivalent to as much as a 30 percent tariff on trade. This is larger than estimated tariffequivalent costs of border and language barriers and tariff-equivalent reduction through GSPs and WTO participation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1222

Classification and Topics

• Classification: Wirtschaft ; Conflict; Conflict Resolution; Alliances; Revolutions ; Macroeconomic Analyses of Economic Development
• Subject: trade ; conflict ; terrosism ; Gewalt ; Politische Gewalt ; Politischer Konflikt ; Nichttarifäre Handelshemmnisse ; Zolltarif ; Außenwirtschaft ; Schätzung ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Blomberg, S. Brock ; Hess, Gregory D.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/18861
• Last update: 10.03.2025, 11:45 AM CET