Seaborne Trade Effects of International Terrorism and Effectiveness of the Anti-Terrorist Policy

This paper investigates the effects of international terrorism on seaborne trade and the effectiveness of the different anti-terrorist policies. First, in order to evaluate the level and severity in which terrorism and the threat of terrorism can disrupt international seaborne trade flows, the paper gives some estimates of the effects on trade flows and transportation costs. They prove the necessity of implementation of a new, effective and global anti-terrorist policy. After that two possible kinds of policies are analyzed; the supply-side policy, which raises the cost of terrorism, and the demand-side policy, which is based on reducing its expected benefits. Analysis reveals that the second type of anti-terrorist policy is much more effective. It discourages terrorism by further political democratization, support for market competition and economic decentralization, and international coordination in reducing the risk of terrorism.

Language

  • English

Media Info

  • Media Type: Print
  • Features: References;
  • Pagination: pp 195-204
  • Monograph Title: Maritime Security and MET

Subject/Index Terms

Filing Info

  • Accession Number: 01020120
  • Record Type: Publication
  • ISBN: 1845640586
  • Files: TRIS
  • Created Date: Feb 27 2006 5:08PM