Rising terrorism risks are a major obstacle for Belt and Road countries to integrate into the global trade network. Based on the cross-country panel data of the now 66 Belt and Road countries during 2000-2013, this pa...Rising terrorism risks are a major obstacle for Belt and Road countries to integrate into the global trade network. Based on the cross-country panel data of the now 66 Belt and Road countries during 2000-2013, this paper carries out an empirical study on the trade isolation effect of terrorism risks with the following findings: Rising terrorism risks will indeed give rise to a significant "trade isolation effect" with greater negative impact on a country's export than on import. After taking into account the endogeneity of the variable of terrorism risks and heterogeneous casualties of terrorist attacks, this conclusion remains robust. In addition, the trade isolation effect of terrorism risks is also characterized by heterogeneous targets under attack, i.e. the degree of trade isolation effect is positively correlated with the randomness of targets under terrorist attacks.展开更多
文摘Rising terrorism risks are a major obstacle for Belt and Road countries to integrate into the global trade network. Based on the cross-country panel data of the now 66 Belt and Road countries during 2000-2013, this paper carries out an empirical study on the trade isolation effect of terrorism risks with the following findings: Rising terrorism risks will indeed give rise to a significant "trade isolation effect" with greater negative impact on a country's export than on import. After taking into account the endogeneity of the variable of terrorism risks and heterogeneous casualties of terrorist attacks, this conclusion remains robust. In addition, the trade isolation effect of terrorism risks is also characterized by heterogeneous targets under attack, i.e. the degree of trade isolation effect is positively correlated with the randomness of targets under terrorist attacks.
