Terrorist attacks and total factor productivity

Seongjae Mun, Seung Hun Han, Hyeong Joon Kim

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

This study examines the impact of terrorist attacks on total factor productivity (TFP). Using measures of attack proximity in the U.S., we find strong evidence that terrorist attacks overall reduce firm-level TFP. Specifically, the firms located near terrorist attacks experience a nearly 3.4% TFP decrease in standard deviation units. Our evidence is robust to a battery of additional tests, and the impact of terrorist attacks on TFP is more pronounced for high-competition industries and firms with high tangibility.

Original languageEnglish
Article number109808
JournalEconomics Letters
Volume202
DOIs
StatePublished - May 2021

Keywords

  • Terrorist attacks
  • Total factor productivity

Fingerprint

Dive into the research topics of 'Terrorist attacks and total factor productivity'. Together they form a unique fingerprint.

Cite this