Resource title

How much does violence tax trade?

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Resource description

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.

Resource author

S. Brock Blomberg, Gregory D. Hess

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18861

Resource license

Adapt according to the presented license agreement and reference the original author.