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A Trade Institution as a Peaceful Institution? A Contribution to Integrative Theory

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  • Raul Caruso

    (Universitá Cattolica del Sacro Cuore di Milano Milan, Italy, raul.caruso@unicatt.it)

Abstract

Recent studies emphasize the occurrence of conflict as a rational economic activity along with production and exchange. Agents are assumed to divide their efforts into fighting and productive activities, as commonly denoted by “guns†and “butter.†This article tries to go beyond this “manichean†idea, assuming Boulding's concept of “integrative system.†In particular, the article investigates whether a trade institution committed to free and fair trade could foster “peaceful†benefits for member countries. The analysis, produced in a very simplified world, counts as a founding pillar of the Contest Success Function. The results of the model suggest that in an institutionalized scenario, agents gain more both in terms of economic utility and in terms of peace than in “continuing conflict†and “obstructed trade†scenarios.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:compsc:v:23:y:2006:i:1:p:53-72
    DOI: 10.1080/07388940500503812
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    6. Polachek Solomon W, 2011. "Current Research and Future Directions in Peace Economics: Trade Gone Awry," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-14, January.
    7. 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'.
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    13. Economou Emmanouil M.L. & Kyriazis Nicholas C., 2016. "Choosing Peace Instead of War. A Lesson from Athenian Democracy," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(2), pages 191-212, April.
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    18. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
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