TY - BOOK ID - 133623758 TI - Are Lives A Substitute for Livelihoods ? : Terrorism, Security, and U.S. Bilateral Imports AU - Mirza, Daniel AU - Verdier, Thierry PY - 2006 PB - Washington, D.C., The World Bank, DB - UniCat KW - Attack KW - Attacks KW - Car Bomb KW - Conflict and Development KW - Counter-Terrorism KW - Counter-Terrorism Measures KW - Country Strategy and Performance KW - Debt Markets KW - E-Business KW - E-Finance and E-Security KW - Economic Theory and Research KW - Emerging Markets KW - Finance and Financial Sector Development KW - Hazard Risk Management KW - Homeland Security KW - Industry KW - Information KW - International Terrorism and Counterterrorism KW - International Trade KW - Logistical Support KW - Macroeconomics and Economic Growth KW - Private Sector Development KW - Security KW - Technology Industry KW - Terrorism KW - Terrorism Acts KW - Terrorism Thre Terrorist KW - Terrorist Activities KW - Terrorist Attack KW - Terrorist Incidents KW - Terrorist Organizations KW - Transport KW - Transport Security KW - Travel KW - Urban Development KW - World Trade UR - https://www.unicat.be/uniCat?func=search&query=sysid:133623758 AB - What is the impact of terrorism on trade through higher security at the borders? The authors set up a theory which shows that the impact goes not only from terrorism to trade. Higher trade with a partner might, in turn, increase the probability of terrorism acts and make security measures more costly for total welfare. To identify the true impact of terrorism, their theory allows for a strategy to condition out the latter mechanism. The authors show in particular how past incidents perpetrated in third countries (anywhere in the world except the origin or targeted country) constitute good exogenous factors for current security measures at the borders. Their tests suggest that terrorist incidents have a small effect on U.S. imports on average, but a much higher effect for those origin countries at the top of the distribution of incidents. In addition, the level of the impact is up to three times higher when the acts result in a relatively high number of victims, the products are sensitive to shipping time, and the size of the partner is small. The authors further show how terrorism affects the number of business visas given by the United States, thereby affecting significantly U.S. imports in differentiated products. These results suggest that security to prevent terrorism does matter for trade. ER -