Swiss Journal of Economics and Statistics

, Volume 145, Issue 4, pp 453–461 | Cite as

Trade and the Spillovers of Transnational Terrorism

Open Access


We examine the impact of transnational terrorism diffusion on security and international trade. To counter the diffusion of transnational terrorism, targeted governments implement security measures against countries where terror could potentially diffuse. Since security measures raise trade costs, we argue that countries, close enough to those from where terror originates, should experience negative spillovers on their trade. We find evidence for this hypothesis in our data. We show that the closer a country is to a source of terrorism, the higher the negative spillovers on its trade.


F12 F13 


terrorism trade security 


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Copyright information

© Swiss Society of Economics and Statistics 2009

Authors and Affiliations

  1. 1.Maison des Sciences Économiques106-112 boulevard de l’HôpitalParisFrance
  2. 2.Faculté de droit et sciences économiques François Rabelais de Tours50 avenue Jean PortalisToursFrance
  3. 3.École normale supérieure48 boulevard JourdanParisFrance

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