International Trade, Security and Transnational Terrorism: Theory and Empirics

Mirza, Daniel; Verdier, Thierry

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International Trade, Security and Transnational Terrorism: Theory and Empirics

CEPR Discussion Paper No. DP6174

32 Pages Posted: 20 May 2008

See all articles by Daniel Mirza

Daniel Mirza

University of Nottingham - School of Economics; Université de Rennes I; CEPII, Centre d'Etudes Prospectives et d'Info. Internationales

Thierry Verdier

Paris School of Economics (PSE); Pontifical Catholic University of Rio de Janeiro (PUC-Rio) - Department of Economics; Centre for Economic Policy Research (CEPR)

There are 3 versions of this paper

Date Written: March 2007

Abstract

In this paper, we offer a general analytical framework to illustrate the complex two-way interactions between trade and transnational terrorism. We then survey the recent economic literature in light of this framework by pointing to the importance in empirical studies a) to control appropriately for these interactions, b) to distinguish between 'source' countries and 'target' countries of terrorism and c) to take into account the intertemporal persistence of terrorism between specific pairs of countries.

Keywords: Globalization, security, terrorism

JEL Classification: F12, F13

Suggested Citation: Suggested Citation

Mirza, Daniel and Verdier, Thierry, International Trade, Security and Transnational Terrorism: Theory and Empirics (March 2007). CEPR Discussion Paper No. DP6174, Available at SSRN: https://ssrn.com/abstract=1133818