National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries

35 Pages Posted: 5 Oct 2010 Last revised: 26 Nov 2013

Sofronis Clerides

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

Antonis Michis

Central Bank of Cyprus

Multiple version iconThere are 2 versions of this paper

Date Written: October 2013

Abstract

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.

Keywords: national sentiment, consumer choice, consumer boycotts, Iraq war

JEL Classification: D12, D01, L66

Suggested Citation

Clerides, Sofronis and Davis, Peter J. and Michis, Antonis, National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries (October 2013). Available at SSRN: https://ssrn.com/abstract=1687180 or http://dx.doi.org/10.2139/ssrn.1687180

Sofronis Clerides (Contact Author)

University of Cyprus - Department of Economics ( email )

75 Kallipoleos Street
P.O. Box 20537
1678 Nicosia
Cyprus
+35 7 2289 2450 (Phone)
+35 7 2289 2432 (Fax)

Centre for Economic Policy Research (CEPR) ( email )

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

University of Bologna - Rimini Center for Economic Analysis (RCEA) ( email )

Via Patara, 3
Rimini (RN), RN 47900
Italy

Peter J. Davis

Applied Economics Ltd. ( email )

no address available
United Kingdom
+44 (0)207 852 354 (Phone)

Competition Commission ( email )

Victoria House
London WC2A 2JT
United Kingdom

Antonis Michis

Central Bank of Cyprus ( email )

80 Kennedy Ave
1076 Nicosia
Cyprus

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