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Trade, Openness and Domestic Conflict: An Empirical Investigation for Latin America

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Author Info
Prasad Bhattacharya () (Deakin University)
Dimitrios D. Thomakos () (University of Peloponnese Tripolis Campus 22100)

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Abstract

This paper explores whether there is an empirical relationship between trade, openness and domestic conflict for Latin America based on the analytical framework of Garfinkel, Skaperdas and Syropoulos (2004). Using ordinal regressions and Markov switching models for seventeen countries, we identify the factors responsible for the initiation and sustenance of domestic conflict. Our overall results suggest that: (i) increased trade openness reduces domestic conflict intensities but (ii) over dependence on agricultural exports, along with poor socio-political performance, lead to sustenance of low intensity conflicts. We also analyze conflict duration using proportional hazard models and find that over-reliance on agricultural exports plays the main role in conflict sustenance after controlling for socio-political factors.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2006-02eco.pdf
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Publisher Info
Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2006_02.

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Length: 59 pages
Date of creation: 12 Oct 2006
Date of revision:
Handle: RePEc:dkn:econwp:eco_2006_02

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Related research
Keywords: Trade Openness; Domestic Conflict; Ordinal Regression; Markov Switching; Proportional Hazard Model; Latin America;

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Find related papers by JEL classification:
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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