National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries
University of Cyprus - Department of Economics; Centre for Economic Policy Research (CEPR); University of Bologna - Rimini Center for Economic Analysis (RCEA)
Peter J. Davis
Applied Economics Ltd.; Competition Commission
Central Bank of Cyprus
September 1, 2012
Did the rise in anti-American sentiment caused by the Iraq war affect sales of US goods abroad? We address this question using data on soft drink and fabric detergent sales in nine Arab countries. We find a statistically significant negative impact of the war on sales of US soft drinks in seven countries. The impact dissipates after a few months in two countries but persists in the other five. In the case of detergents we only find a significant negative impact in one country. We conclude that international politics can sometimes affect consumer behavior and impact market outcomes.
Number of Pages in PDF File: 39
Keywords: Consumer Behavior, Consumer Boycotts, Iraq War
JEL Classification: D12, D01, L66working papers series
Date posted: October 5, 2010 ; Last revised: November 6, 2012
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