Working Paper: CEPR ID: DP8041
Authors: Sofronis Clerides; Peter Davis; Antonis Michis
Abstract: 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.
Keywords: Consumer Behaviour; Consumer Boycotts; Iraq War
JEL Codes: D01; D12; L66
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Iraq War (H56) | Sales of US soft drinks (L66) |
| Iraq War (H56) | Sales of fabric detergents (L67) |
| Anti-American sentiment (F52) | Sales of US soft drinks (L66) |
| Iraq War (H56) | Consumer behavior (D19) |
| Iraq War (H56) | Market outcomes (D49) |