DP8041 The Impact of the Iraq War on US Consumer Goods Sales in Arab Countries
| Author(s): | Sofronis Clerides, Peter Davis, Antonis Michis |
| Publication Date: | October 2010 |
| Date Revised: | November 2011 |
| Keyword(s): | consumer behavior, consumer boycotts, Iraq war |
| JEL(s): | D01, D12, L66 |
| Programme Areas: | Industrial Organization |
| Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=8041 |
Did the rise in anti-American sentiment caused by the Iraq war a ffect sales of US goods abroad? We address this question using data on soft drink and fabric detergent sales in nine Arab countries. We find a statistically significant negative impact of the war on sales of US soft drinks in seven countries. The impact dissipates after a few months in two countries but persists in the other five. In the case of detergents we only find a significant negative impact in one country. We conclude that international politics can sometimes affect consumer behavior and impact market outcomes.