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Economic Integration, International Conflict and Political Unions

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  • Enrico Spolaore

    ()
    (Tufts University, Medford (MA - USA))

Abstract

This article studies the interactions among economic integration, international conflict, and the formation and breakup of political unions. Economic integration reduces the importance of political size, while international conflict increases it. When international conflict reduces economic integration between politically separate units, multiple equilibria are possible. In one equilibrium, political units are small and more open and engage less in conflict, therefore making political size less important. In another equilibrium, the world is formed by larger units, with more conflict and less economic integration

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Bibliographic Info

Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 94 (2004)
Issue (Month): 5 (September-October)
Pages: 3-50

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Handle: RePEc:rpo:ripoec:v:94:y:2004:i:5:p:3-50

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  8. Smith, Ron, 1995. "The demand for military expenditure," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 4, pages 69-87 Elsevier.
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Cited by:
  1. Zuleta, Hernando & Villaveces, Marta Juanita & Andonova, Veneta, 2013. "Conflict and negotiation in Colombia: Are pre-donations useful?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 105-117.
  2. Vincent Vicard, 2008. "Trade, conflicts and political integration : explaining the heterogeneity of regional trade agreements," Documents de travail du Centre d'Economie de la Sorbonne bla08022, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  3. Enrico Spolaore, 2009. "National Borders, Conflict and Peace," Discussion Papers Series, Department of Economics, Tufts University 0744, Department of Economics, Tufts University.
  4. Raul Caruso, 2007. "Continuing Conflict and Stalemate: A note," Economics Bulletin, AccessEcon, vol. 4(17), pages 1-8.
  5. Enrico Spolaore & Romain Wacziarg, 2009. "War and Relatedness," NBER Working Papers 15095, National Bureau of Economic Research, Inc.
  6. Raul Caruso, 2008. "Reciprocity in the shadow of threat," International Review of Economics, Springer, vol. 55(1), pages 91-111, April.
  7. Alessandro Romagnoli & Luisa Mengoni, 2009. "The challenge of economic integration in the MENA region: from GAFTA and EU-MFTA to small scale Arab Unions," Economic Change and Restructuring, Springer, vol. 42(1), pages 69-83, May.
  8. Caruso, Raul, 2006. "Conflict and Conflict Management with Interdependent Instruments and Asymmetric Stakes,(The Good-Cop and the Bad-Cop Game)," MPRA Paper 214, University Library of Munich, Germany, revised Sep 2006.
  9. Caruso, Raul, 2007. "A Tentative Model of Conflict, Appropriation and Production in a two-sector Economy," MPRA Paper 4053, University Library of Munich, Germany.
  10. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
    [ENDOGENOUS BOUNDARIES AND DISTRIBUTION O
    ," MPRA Paper 16473, University Library of Munich, Germany.

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