The Impact of Terrorism on Firm-Level Performance and Employment: An Empirical Assessment for France

Although empirical research has studied both the direct and indirect economic effects of terrorism on the overall economy, little is known about the impact on firm-level economic behavior and performance. This paper examines the effect of terrorist attacks on local firm-level outcomes, including number of employees and operating revenues. The paper focuses on France for the period between 2011 and 2018. Based on a two-way fixed effects methodology, the main results suggest that: (i) terrorist attacks reduce firms' operating revenues in the year of the attack; (ii) there seems to be a negative effect on both firms' revenues and employment during the three years after the attack; (iii) the effects seem larger for transnational terrorist incidents compared to domestic incidents; and (iv) the immediate effects are more pronounced in the tourism industry, but firms recover quickly after the attack. Overall, I identify a negative and robust effect of terrorism on firms' revenues, while the findings on employment only hold under certain assumptions.

• Autores: Bayter Martínez, María Paulina
• Fecha de publicación: 2021
• Institución: Universidad de los Andes
• Repositorio: Séneca: repositorio Uniandes
• Idioma: eng
• OAI Identifier: oai:repositorio.uniandes.edu.co:1992/53658
• Acceso en línea: http://hdl.handle.net/1992/53658
• Palabra clave: Terrorismo; Empresas; Empleo; Economía
• Rights: openAccess
• License: http://creativecommons.org/licenses/by-nc-nd/4.0/