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The Impact of Terrorism on Italian Employment and Business Activity

Author

Listed:
  • Robert T. Greenbaum

    (John Glenn School of Public Affairs, Ohio State University, 310N Page Hall, 1810 College Road, Columbus, OH 43210-1336, USA, greenbaum.3@osu.edu)

  • Laura Dugan

    (Department of Criminology and Criminal Justice, University of Maryland, 2220 LeFrak Hall, College Park, MD 20742, USA, ldugan@crim.umd.edu)

  • Gary LaFree

    (National Center for the Sudy of Terrorism and Responses to Terrorism, University of Maryland, 3300 Symons Hall, College Park, MD 20742, USA, .glafree@start.umd.edu)

Abstract

Despite the growth in research examining direct economic impacts of terrorism, the indirect impact of terrorism on the stability of local economies has generally been overlooked. Using panel data regression models and the most comprehensive open source database on terrorism currently available to researchers, the paper examines the impact of terrorism on employment and business outcomes in Italy from 1985 to 1997. It is found that terrorist attacks reduce the number of firms and employment in the year following an attack. By disaggregating net outcomes into their component gross flows, it is also found that these impacts are primarily attributable to reduced business formations and expansions.

Suggested Citation

  • Robert T. Greenbaum & Laura Dugan & Gary LaFree, 2007. "The Impact of Terrorism on Italian Employment and Business Activity," Urban Studies, Urban Studies Journal Limited, vol. 44(5-6), pages 1093-1108, May.
    • Handle: RePEc:sae:urbstu:v:44:y:2007:i:5-6:p:1093-1108
    DOI: 10.1080/00420980701255999
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    References listed on IDEAS

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    Cited by:

    1. Abdurrahim EMHAN, 2011. "The Effects of Terror and Violence on Entrepreneurs in the Eastern and South-eastern Regions of Turkey: A Field Research," Sosyoekonomi Journal, Sosyoekonomi Society, issue 16(16).
    2. Zaman BUSHRA & Amin AMJAD, 2017. "Women, children and terrorism: social, economic and political costs (empirical investigation from Pakistan 2002-2015)," Romanian Journal of Economics, Institute of National Economy, vol. 44(1(53)), pages 107-120, June.
    3. Tim Krieger & Daniel Meierrieks, 2010. "Terrorism in the Worlds of Welfare Capitalism," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(6), pages 902-939, December.
    4. Abel Brodeur, 2018. "The Effect of Terrorism on Employment and Consumer Sentiment: Evidence from Successful and Failed Terror Attacks," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 246-282, October.
    5. Tingbani, Ishmael & Okafor, Godwin & Tauringana, Venancio & Zalata, Alaa Mansour, 2019. "Terrorism and country-level global business failure," Journal of Business Research, Elsevier, vol. 98(C), pages 430-440.
    6. Asghar Afshar Jahanshahi & Alexander Brem & Hussain Gholami, 2019. "Working in a Physically Dangerous Work Environment: Employee Vitality and Sustainable Behavior," Sustainability, MDPI, vol. 11(19), pages 1-20, September.

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