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JSPES, Vol. 31, No. 3 (Fall 2006 )
pp. 321 - 338

International Terrorism in Latin America: Effects on Foreign Investment and Tourism

James M. Lutz
Brenda J. Lutz

Indiana University-Purdue University at Fort Wayne

It has been suggested that terrorist attacks can have serious economic consequences for the countries where the attacks occur. An analysis of 23 countries in Latin America between 1969 and 1988 indicated that incidents of terrorism had only modest negative effects on foreign direct investment in these countries even though foreign operations of multinational corporations were frequent targets in this period. The tourist sector, however, was more susceptible to negative influences from terrorist violence.