Sousa, José de; Mirza, Daniel; Verdier, Thierry - Centre d'études prospectives et d'informations … - 2010
We study the impact of transnational terrorism diffusion on security and trade. We set a simple theoretical model … security measures, which impede trade, are directed both against the source country of terror and its neighbor countries where … predicting that the closer a country to a source of terrorism, the higher the negative spillovers on its trade. The idea is that …