THE EFFECTS OF TERRORISM ON TRADE BETWEEN BRAZIL AND ITS MAIN COMMERCIAL PARTNERS

Authors

  • Alícia Cechin Universidade Federal de Vicosa UFV
  • Carlos A. Charris Universidade Federal de Viçosa (UFV)
  • Fernanda Aparecida Silva Universidade Federal de Viçosa (UFV)

Abstract

This paper examines the relationship between terrorist incidents and Brazilian bilateral trade with important trading partners. The method used in this work was the Poisson Pseudo Maximum Likelihood (PPML). We only considered, for their importance, bilateral trade between Brazil and the European Union, NAFTA and BRICs during the period from 2000 to 2016. We find a consistently negative relationship between terrorist acts and bilateral trade. These results are consistent with the idea that increases in terrorist incidents raise trade costs between countries. In addition, the relationships between bilateral trade and the set of variables that compose the gravitational model were examined. The results obtained are in accordance with this model.

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Published

2021-12-14

How to Cite

Cechin, A., A. Charris, C., & Aparecida Silva, F. (2021). THE EFFECTS OF TERRORISM ON TRADE BETWEEN BRAZIL AND ITS MAIN COMMERCIAL PARTNERS. Revista De Economia Mackenzie, 18(2), 34–59. Retrieved from http://editorarevistas.mackenzie.br/index.php/rem/article/view/14314

Issue

Vol. 18 No. 2 (2021)

Section

Artigos

License

The copyright of papers published in the Revista de Economia Mackenzie belongs to the authors, who grant to the Mackenzie Presbyterian University the exclusive rights to publish the content. Total or partial reproduction is prohibited without due authorization of the Editorial Committee, except when it is previously authorized.