Terrorist attacks and total factor productivity

Seongjae Mun; Seung Hun Han; Hyeong Joon Kim

doi:10.1016/j.econlet.2021.109808

Terrorist attacks and total factor productivity

Seongjae Mun
, Seung Hun Han
, Hyeong Joon Kim

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

11 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 language	English
Article number	109808
Journal	Economics Letters
Volume	202
DOIs	https://doi.org/10.1016/j.econlet.2021.109808
State	Published - May 2021

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 16 Peace, Justice and Strong Institutions

Keywords

Terrorist attacks
Total factor productivity

Access to Document

10.1016/j.econlet.2021.109808

Cite this

@article{94ecc90e6d364c198df5c9f23df0cb63,

title = "Terrorist attacks and total factor productivity",

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.",

keywords = "Terrorist attacks, Total factor productivity",

author = "Seongjae Mun and Han, \{Seung Hun\} and Kim, \{Hyeong Joon\}",

note = "Publisher Copyright: {\textcopyright} 2021 Elsevier B.V.",

year = "2021",

month = may,

doi = "10.1016/j.econlet.2021.109808",

language = "English",

volume = "202",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier B.V.",

}

TY - JOUR

T1 - Terrorist attacks and total factor productivity

AU - Mun, Seongjae

AU - Han, Seung Hun

AU - Kim, Hyeong Joon

PY - 2021/5

Y1 - 2021/5

N2 - 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.

AB - 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.

KW - Terrorist attacks

KW - Total factor productivity

UR - https://www.scopus.com/pages/publications/85103724870

U2 - 10.1016/j.econlet.2021.109808

DO - 10.1016/j.econlet.2021.109808

M3 - Article

AN - SCOPUS:85103724870

SN - 0165-1765

VL - 202

JO - Economics Letters

JF - Economics Letters

M1 - 109808

ER -

Terrorist attacks and total factor productivity

Abstract

UN SDGs

Keywords

Access to Document

Other files and links

Fingerprint

Cite this