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Why Democracies Cooperate More and Fight Less: The Relationship between International Trade and Cooperation

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  • Polachek, Solomon W

Abstract

This paper provides an economics-based interpretation of the standard finding in the literature that democracies rarely fight each other. A general theory of conflict between two countries is presented and empirical analysis applies this theory to the question of why democracies rarely fight each other. The results show that the fundamental factor in causing bilateral cooperation is trade. Countries seek to protect wealth gained through international trade, therefore trading partners are less combative than nontrading nations. Democratic dyads trade more than nondemocratic dyads, and thus exhibit less conflict and more cooperation. Copyright 1997 by Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 5 (1997)
Issue (Month): 3 (August)
Pages: 295-309

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Handle: RePEc:bla:reviec:v:5:y:1997:i:3:p:295-309

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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Cited by:
  1. Dinar, Ariel & Blankespoor, Brian & Dinar, Shlomi & Kurukulasuriya, Pradeep, 2010. "Does precipitation and runoff variability affect treaty cooperation between states sharing international bilateral rivers?," Ecological Economics, Elsevier, vol. 69(12), pages 2568-2581, October.
  2. Polachek, Solomon, 2004. "How Outsourcing Affects Bilateral Political Relations," IZA Discussion Papers 1334, Institute for the Study of Labor (IZA).
  3. Shiro Armstrong, 2009. "Japanese FDI in China - determinants and performance," EABER Working Papers 22854, East Asian Bureau of Economic Research.
  4. Mamoon, Dawood & Murshed, S. Mansoob, 2007. "Politics Remains but Economics Leads and Peace Follows: Making a Case for India-Pakistan Peace Process in line with China Model," MPRA Paper 3075, University Library of Munich, Germany.
  5. Mamoon, Dawood & S. Murshed, Mansoob, 2008. "India and Pakistan: Trading for Peace," MPRA Paper 10432, University Library of Munich, Germany.
  6. Erik Gartzke & Dominic Rohner, 2010. "To conquer or compel: war, peace, and economic development," IEW - Working Papers 511, Institute for Empirical Research in Economics - University of Zurich.
  7. Massoud Tansa G. & Magee Christopher S., 2012. "Trade and Political, Military, and Economic Relations," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-39, May.
  8. Murshed, S.M. & Mamoon, D., 2007. "On the costs of not loving thy neighbour as thyself: the trade, democracy and military expenditure explanations behind India-Pakistan rivalry," ISS Working Papers - General Series 18748, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  9. Murshed, Mansoob & Mamoon, Dawood, 2008. "The consequences of Not Loving thy neigbor as Thyself: Trade, democracy and military explainations behind India Pakistan rivalry," MPRA Paper 10429, University Library of Munich, Germany.
  10. Mamoon, Dawood & S. Mansoob, Murshed, 2008. "On the Conflict Mitigating Effects of Trade: The India-Pakistan Case," MPRA Paper 10431, University Library of Munich, Germany.
  11. Chang, Yuan-Ching & Polachek, Solomon W. & Robst, John, 2004. "Conflict and trade: the relationship between geographic distance and international interactions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(4), pages 491-509, September.
  12. Moons, S.J.V. & van Bergeijk, P.A.G., 2013. "A meta-analysis of economic diplomacy and its effect on international economic flows," ISS Working Papers - General Series 50074, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

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