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National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries

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  • Sofronis Clerides
  • Peter Davis
  • Antonis Michis

Abstract

Did the rise in anti-American sentiment caused by the Iraq war affect sales of US goods abroad? We address this question using data on soft drinks and fabric detergents 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 market outcomes.

Suggested Citation

  • Sofronis Clerides & Peter Davis & Antonis Michis, 2015. "National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 829-851, July.
    • Handle: RePEc:bla:scandj:v:117:y:2015:i:3:p:829-851
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    Cited by:

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    2. Levy, Daniel & Snir, Avichai, 2022. "Potterian Economics," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1, pages 1-32.
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    8. Klymak, Margaryta, 2023. "The trade effects of information provision about forced and child labor," World Development, Elsevier, vol. 167(C).
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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