Not loving thy neighbour as thyself: Trade, democracy and military expenditure explanations underlying India-Pakistan rivalry
AbstractThis article analyses whether greater international trade, democracy and reduced military spending lower hostility between India and Pakistan. Conflict between the two nations can be best understood in a multivariate framework where variables such as economic performance, multilateral trade with the rest of the world, bilateral trade, military expenditure, democracy scores and population are simultaneously taken into account. The empirical investigation is based on time series econometrics from 1950-2005, allowing causality to be examined. The results suggest that reduced bilateral trade, greater military expenditure, less development expenditure, lower levels of democracy, lower growth rates and less general trade openness are all conflict enhancing, albeit with lags in some cases. Moreover, there is reverse causality between bilateral trade, militarization and conflict; low levels of bilateral trade and high militarization are conflict enhancing, but conflict also reduces bilateral trade and raises militarization. Economic growth is conflict mitigating, but the reverse is not true. Globalization, or greater openness to trade with the rest of the world, is the most significant driver of a liberal peace, corroborating a modified form of the capitalist peace, rather than a common democratic political orientation suggested by the pure form of the Kantian liberal peace.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Peace Research Institute Oslo in its journal Journal of Peace Research.
Volume (Year): 47 (2010)
Issue (Month): 4 (July)
Contact details of provider:
Web page: http://www.prio.no/
international trade; inter-state conflict; liberal peace; India-Pakistan;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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.
- Sylvanus Kwaku Afesorgbor & Peter A.G. van Bergeijk, 2014. "Measuring multi-membership in economic integration and its trade-impact. A comparative study of ECOWAS and SADC," Economics Working Papers 2014-06, School of Economics and Management, University of Aarhus.
- Afesorgbor, Sylvanus Kwaku & van Bergeijk, Peter A.G., 2011. "Multi-membership and effectiveness of regional trade agreements in Western and Southern Africa: a comparative study of ECOWAS and SADC," Proceedings of the German Development Economics Conference, Berlin 2011 1, Verein für Socialpolitik, Research Committee Development Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).
If references are entirely missing, you can add them using this form.