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Geographic Proximity, Trade and International Conflict/Cooperation

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Author Info

  • Robst, John

    ()
    (University of South Florida)

  • Polachek, Solomon

    ()
    (Binghamton University, New York)

  • Chang, Yuan-Ching

    ()
    (Chinese Cultural University)

Abstract

This paper examines the interactive effect of distance and trade on international conflict and cooperation. The effect of geographic distance depends on trade, while the effect of trade varies with geographic distance. Trade reduces conflict to a greater extent when dyads are geographically close, but has a greater effect on cooperation when countries are more distant. Geographic proximity increases conflict and cooperation more among non-trading dyads.

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File URL: http://ftp.iza.org/dp1988.pdf
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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1988.

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Length: 50 pages
Date of creation: Feb 2006
Date of revision:
Publication status: published in: Conflict Management and Peace Science, 2007, 24 (1), 1-24
Handle: RePEc:iza:izadps:dp1988

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Keywords: conflict; trade; distance; geographic proximity; cooperation; international interactions; international relations;

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References

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  1. Schiff, Maurice & Winters, L Alan, 1998. "Regional Integration as Diplomacy," World Bank Economic Review, World Bank Group, World Bank Group, vol. 12(2), pages 271-95, May.
  2. Gartzke, Erik & Li, Quan & Boehmer, Charles, 2001. "Investing in the Peace: Economic Interdependence and International Conflict," International Organization, Cambridge University Press, Cambridge University Press, vol. 55(02), pages 391-438, March.
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  4. Gordon H. Hanson & Chong Xiang, 2002. "The Home Market Effect and Bilateral Trade Patterns," NBER Working Papers 9076, National Bureau of Economic Research, Inc.
  5. Sandler, Todd, 1999. "Alliance Formation, Alliance Expansion, and the Core," Staff General Research Papers, Iowa State University, Department of Economics 1669, Iowa State University, Department of Economics.
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  7. Anderton, Charles H & Anderton, Roxane A & Carter, John R, 1999. "Economic Activity in the Shadow of Conflict," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 37(1), pages 166-79, January.
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  9. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 69-85, January.
  10. Green, Donald P. & Kim, Soo Yeon & Yoon, David H., 2001. "Dirty Pool," International Organization, Cambridge University Press, Cambridge University Press, vol. 55(02), pages 441-468, March.
  11. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, Elsevier, vol. 80(1), pages 123-129, July.
  12. Peter Egger, 2002. "An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 25(2), pages 297-312, 02.
  13. Chang, Yuan-Ching & Polachek, Solomon W. & Robst, John, 2004. "Conflict and trade: the relationship between geographic distance and international interactions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 33(4), pages 491-509, September.
  14. Beck, Nathaniel & Katz, Jonathan N., 2001. "Throwing Out the Baby with the Bath Water: A Comment on Green, Kim, and Yoon," International Organization, Cambridge University Press, Cambridge University Press, vol. 55(02), pages 487-495, March.
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Cited by:
  1. Diana Bozhilova, 2009. "EU Energy Policy and Regional Co-operation in South-East Europe: managing energy security through diversification of supply?," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe, Hellenic Observatory, LSE 24, Hellenic Observatory, LSE.
  2. Brauer, Jurgen & Caruso, Raul, 2011. "Peace economists and peace economics," MPRA Paper 34927, University Library of Munich, Germany.
  3. Murshed, Mansoob & Mamoon, Dawood, 2008. "The consequences of Not Loving thy neigbor as Thyself: Trade, democracy and military explainations behind India Pakistan rivalry," MPRA Paper 10429, University Library of Munich, Germany.
  4. Shiro Armstrong, 2010. "Interaction between trade, conflict and cooperation : the case of Japan and China," Trade Working Papers 22766, East Asian Bureau of Economic Research.
  5. Balding, Christopher, 2011. "A Re-examination of the Relation between Democracy and International Trade The Case of Africa," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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