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 …

transnational terrorism. Then they survey the recent economic literature in light of this framework by pointing to the importance in … "target" countries of terrorism, and (3) taking into account the intertemporal persistence of terrorism between specific pairs …