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The Impact of Conflict Types and Location on Trade

Author

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  • Valentina Marano
  • Alvaro Cuervo-Cazurra
  • Chuck C. Y. Kwok

Abstract

This article investigates the impact of interstate and intrastate conflict on trade. Analyses rely on a pooled time-series cross-sectional dataset with observations for 134 countries from 1979 to 2000. Results show that intrastate conflict has a larger negative impact on trade than interstate conflict; conflict in the exporting country has a more negative impact on trade than conflict in the importing country; and, finally, conflict's destructive effects go beyond the borders of the countries that directly experience it, as trade flows are also negatively influenced by conflict in neighboring countries.

Suggested Citation

  • Valentina Marano & Alvaro Cuervo-Cazurra & Chuck C. Y. Kwok, 2013. "The Impact of Conflict Types and Location on Trade," The International Trade Journal, Taylor & Francis Journals, vol. 27(3), pages 197-224, August.
    • Handle: RePEc:taf:uitjxx:v:27:y:2013:i:3:p:197-224
    DOI: 10.1080/08853908.2013.796835
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    1. Richard Baldwin & Daria Taglioni, 2006. "Gravity for Dummies and Dummies for Gravity Equations," NBER Working Papers 12516, National Bureau of Economic Research, Inc.
    2. Paul Collier & V. L. Elliott & Håvard Hegre & Anke Hoeffler & Marta Reynal-Querol & Nicholas Sambanis, 2003. "Breaking the Conflict Trap : Civil War and Development Policy," World Bank Publications - Books, The World Bank Group, number 13938, December.
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    Cited by:

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    2. Kuang-Hann Chou & Chien-Hsun Chen & Chao-Cheng Mai, 2015. "Factors Influencing China's Exports with a Spatial Econometric Model," The International Trade Journal, Taylor & Francis Journals, vol. 29(3), pages 191-211, August.
    3. Chen, Stephen, 2017. "Profiting from FDI in conflict zones," Journal of World Business, Elsevier, vol. 52(6), pages 760-768.
    4. Kamin, Katrin, 2022. "Bilateral trade and conflict heterogeneity: The impact of conflict on trade revisited," Kiel Working Papers 2222, Kiel Institute for the World Economy (IfW Kiel).

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