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The Trade and Conflict Debate: A Survey of Theory, Evidence and Future Research

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  • Reuveny Rafael

    (Indiana University)

Abstract

No one disputes that international trade is affected by economic variables. However, the effects of political variables on trade also are important. For countries in peace, political agendas can affect trade through protectionism, for example. Political interventions in trade between hostile nations can halt trade, although hostile countries sometimes continue to trade. Casual observations also bear out that trade itself is a potential source of political conflict or cooperation between nations. In spite of this, economists in large part have not studied the relationship between trade and political conflict or cooperation between nations. Krugman, for one, argues that "trade politics is primarily about conflicts of interest within rather than between nations (1995: 28)." Bergeijk (1994: Chapter 5) even suggests that many economists view political conflicts between nations as unworthy of formal analysis.

Suggested Citation

  • Reuveny Rafael, 2000. "The Trade and Conflict Debate: A Survey of Theory, Evidence and Future Research," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 6(1), pages 1-29, January.
    • Handle: RePEc:bpj:pepspp:v:6:y:2000:i:1:n:2
    DOI: 10.2202/1554-8597.1030
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    References listed on IDEAS

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    2. Raul Caruso & Marco Di Domizio & David A. Savage, 2015. "Hic Sunt Leones! The role of national identity on aggressiveness between national football teams," DISCE - Quaderni del Dipartimento di Politica Economica ispe0076, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. Reuven Glick & Alan M. Taylor, 2010. "Collateral Damage: Trade Disruption and the Economic Impact of War," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 102-127, February.
    4. Raul Caruso, 2015. "Beyond deterrence and decline. Towards a general understanding of peace economics," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 123(1), pages 57-74.
    5. Raul Caruso, 2021. "Economic Statecraft: from Negative Sanctions to Positive Sanctions," Working Papers 1010, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    6. Raul Caruso, 2006. "A Trade Institution as a Peaceful Institution? A Contribution to Integrative Theory," Conflict Management and Peace Science, Peace Science Society (International), vol. 23(1), pages 53-72, February.
    7. Nitsch, Volker & Schumacher, Dieter, 2004. "Terrorism and international trade: an empirical investigation," European Journal of Political Economy, Elsevier, vol. 20(2), pages 423-433, June.
    8. Fiona McGillivray & Alastair Smith, 2005. "The Impact of Leadership Turnover and Domestic Institutions on International Cooperation," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(5), pages 639-660, October.
    9. Knill, April & Lee, Bong-Soo & Mauck, Nathan, 2012. "Bilateral political relations and sovereign wealth fund investment," Journal of Corporate Finance, Elsevier, vol. 18(1), pages 108-123.
    10. David Carment & Yiagadeesen Samy & Stewart Prest, 2008. "State Fragility and Implications for Aid Allocation: An Empirical Analysis," Conflict Management and Peace Science, Peace Science Society (International), vol. 25(4), pages 349-373, September.
    11. Zhang, Wenjia & Mauck, Nathan, 2018. "Government-affiliation, bilateral political relations and cross-border mergers: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 51(C), pages 220-250.
    12. Reuveny Rafael, 2001. "Economic Openness As a Goal? The Bigger Picture for the Global System," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 7(1), pages 1-30, January.
    13. 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.
    14. Kwon, Daye & Liverpool-Tasie, Saweda & Reardon, Thomas A., 2023. "Market Channel and Heterogeneous Storage Behavior in response to Multiple Risks: The Case of Nigerian Maize Traders," 2023 Annual Meeting, July 23-25, Washington D.C. 335810, Agricultural and Applied Economics Association.
    15. Peter A.G. van Bergeijk, 2009. "Economic Diplomacy and the Geography of International Trade," Books, Edward Elgar Publishing, number 13518.
    16. Parlow, Anton, 2011. "Does trade promote peace? squared: a gravity equation in a rectangular panel world," MPRA Paper 36430, University Library of Munich, Germany.
    17. Carlos Seiglie, 2016. "Openness of the economy, terms of trade, and arms," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 748-759, January.
    18. Haruna Shoji & Goel Rajeev K., 2016. "International Tariffs in a Mixed Oligopoly with Research Spillovers," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(3), pages 277-293, August.
    19. Raul Caruso & Marco Di Domizio & David A. Savage, 2017. "Differences in National Identity, Violence and Conflict in International Sport Tournaments: Hic Sunt Leones!," Kyklos, Wiley Blackwell, vol. 70(4), pages 511-545, November.
    20. Mintz Alex & Heo Uk, 2014. "Triads in International Relations: The Effect of Superpower Aid, Trade, and Arms Transfers on Conflict in the Middle East," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(3), pages 1-19, August.

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