IDEAS home Printed from https://ideas.repec.org/p/uto/dipeco/202206.html
   My bibliography  Save this paper

Italian Small Arms Exports: Between Incentives and International Sanctions

Author

Listed:

Abstract

This paper empirically investigates the main drivers of Italian Small Arms and Light Weapons (SALW) exports from 1990 to 2017. Italy is a major player in the international trade of SALW being the second largest exporter of these weapons, and the largest if considering only sporting SALW. We apply data on exports from Italy to 143 countries using a gravity framework. Findings highlight that SALW trade appears to be complementary with overall military spending. In fact, Italian exports increase towards countries that are increasing military spending. Specifically, an increase of 1% in the level of the importing country’s military expenditure causes an increase of 0.6% in Italian exports to that country. In addition, results show that international embargoes reduce SALW exports. In the presence of an arms embargo, exports to the target country decrease by 64%. However, our findings also indicate a negative correlation between exports and torture. In other words, SALW demand is negatively associated with violations of human rights.

Suggested Citation

  • Baronchelli, Adelaide & Caruso, Raul, 2022. "Italian Small Arms Exports: Between Incentives and International Sanctions," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202206, University of Turin.
    • Handle: RePEc:uto:dipeco:202206
    as

    Download full text from publisher

    File URL: https://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2022dip/wp_06_2022.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Margherita Comola, 2012. "Democracies, Politics, and Arms Supply," Review of International Economics, Wiley Blackwell, vol. 20(1), pages 150-163, February.
    2. Caruso Raul, 2003. "The Impact of International Economic Sanctions on Trade: An Empirical Analysis," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 9(2), pages 1-36, April.
    3. Vincenzo Bove & Jessica Di Salvatore & Roberto Nisticò, 2023. "Economic Sanctions and Trade Flows in the Neighborhood," Journal of Law and Economics, University of Chicago Press, vol. 66(4), pages 671-697.
    4. Enghin Atalay & Ali Hortaçsu & Mary Jialin Li & Chad Syverson, 2019. "How Wide Is the Firm Border?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 1845-1882.
    5. Akerman, Anders & Seim, Anna Larsson, 2014. "The global arms trade network 1950–2007," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 535-551.
    6. Siegel, M. & Ross, C.S. & King III, C., 2013. "The relationship between gun ownership and firearm homicide rates in the United States, 1981-2010," American Journal of Public Health, American Public Health Association, vol. 103(11), pages 2098-2105.
    7. Chih-Hai Yang, 2020. "Determinants of China’s arms exports: a political economy perspective," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 25(1), pages 156-174, January.
    8. Walter Isard & Merton J. Peck, 1954. "Location Theory and International and Interregional Trade Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 68(1), pages 97-114.
    9. Marius Mehrl & Paul W. Thurner, 2020. "Military Technology and Human Loss in Intrastate Conflict: The Conditional Impact of Arms Imports," Journal of Conflict Resolution, Peace Science Society (International), vol. 64(6), pages 1172-1196, July.
    10. Natasha Agarwal & Zheng Wang, 2018. "Does the US EXIM Bank really promote US exports?," The World Economy, Wiley Blackwell, vol. 41(5), pages 1378-1414, May.
    11. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    12. Pramila Crivelli & Jasmin Groeschl, 2016. "The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows," The World Economy, Wiley Blackwell, vol. 39(3), pages 444-473, March.
    13. Daniel Berger & William Easterly & Nathan Nunn & Shanker Satyanath, 2013. "Commercial Imperialism? Political Influence and Trade during the Cold War," American Economic Review, American Economic Association, vol. 103(2), pages 863-896, April.
    14. Vincenzo Bove & Claudio Deiana & Roberto Nistic�, 2018. "Global Arms Trade and Oil Dependence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 34(2), pages 272-299.
    15. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation," Journal of International Economics, Elsevier, vol. 77(1), pages 77-85, February.
    16. Inmaculada Martínez-Zarzoso & Florian Johannsen, 2019. "The Gravity of Arms," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(1), pages 2-26, January.
    17. Mark Duggan, 2001. "More Guns, More Crime," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 1086-1114, October.
    18. Anna Andersson, 2016. "Export Performance and Access to Intermediate Inputs: The Case of Rules of Origin Liberalisation," The World Economy, Wiley Blackwell, vol. 39(8), pages 1048-1079, August.
    19. Adelaide Baronchelli & Raul Caruso & Roberto Ricciuti, 2022. "Trade in Small Arms and Light Weapons: Are embargoes effective?," The World Economy, Wiley Blackwell, vol. 45(5), pages 1336-1361, May.
    20. Matthew Lang, 2013. "Firearm Background Checks and Suicide," Economic Journal, Royal Economic Society, vol. 123(12), pages 1085-1099, December.
    21. Raul Caruso & Addesa Francesco, 2012. "Country Survey: Military Expenditure And Its Impact On Productivity In Italy, 1988--2008," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(5), pages 471-484, October.
    22. Brzoska Michael, 2008. "Measuring the Effectiveness of Arms Embargoes," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 14(2), pages 1-34, July.
    23. Walter Isard, 1954. "Location Theory and Trade Theory: Short-Run Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 68(2), pages 305-320.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adelaide Baronchelli & Raul Caruso & Roberto Ricciuti, 2022. "Trade in Small Arms and Light Weapons: Are embargoes effective?," The World Economy, Wiley Blackwell, vol. 45(5), pages 1336-1361, May.
    2. Peter A.G. van Bergeijk, 2009. "Economic Diplomacy and the Geography of International Trade," Books, Edward Elgar Publishing, number 13518.
    3. Pamp, Oliver & Lebacher, Michael & Thurner, Paul W. & Ziegler, Eva, 2021. "Explaining destinations and volumes of international arms transfers: A novel network Heckman selection model," European Journal of Political Economy, Elsevier, vol. 69(C).
    4. Koffi Dumor & Li Yao, 2019. "Estimating China’s Trade with Its Partner Countries within the Belt and Road Initiative Using Neural Network Analysis," Sustainability, MDPI, vol. 11(5), pages 1-22, March.
    5. Apeti, Ablam Estel & N’Doua, Bossoma Doriane, 2023. "The impact of timber regulations on timber and timber product trade," Ecological Economics, Elsevier, vol. 213(C).
    6. Auer, Daniel & Meierrieks, Daniel, 2021. "Merchants of death: Arms imports and terrorism," European Economic Review, Elsevier, vol. 137(C).
    7. Afesorgbor, Sylvanus Kwaku, 2019. "The impact of economic sanctions on international trade: How do threatened sanctions compare with imposed sanctions?," European Journal of Political Economy, Elsevier, vol. 56(C), pages 11-26.
    8. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    9. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    10. Martina Lawless, 2010. "Deconstructing gravity: trade costs and extensive and intensive margins," Canadian Journal of Economics, Canadian Economics Association, vol. 43(4), pages 1149-1172, November.
    11. Vincenzo Bove & Claudio Deiana & Roberto Nistic�, 2018. "Global Arms Trade and Oil Dependence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 34(2), pages 272-299.
    12. Natasha Agarwal & Zheng Wang, 2018. "Does the US EXIM Bank really promote US exports?," The World Economy, Wiley Blackwell, vol. 41(5), pages 1378-1414, May.
    13. 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'.
    14. Emmanuelle Lavallée & Julie Lochard, 2022. "International trade and face-to-face diplomacy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(4), pages 987-1010, November.
    15. Escaith, Hubert, 2023. "Trade, (de)globalization and the distance puzzle," MPRA Paper 119045, University Library of Munich, Germany.
    16. Dela-Dem Doe Fiankor & Insa Flachsbarth & Amjad Masood & Bernhard Brümmer, 2020. "Does GlobalGAP certification promote agrifood exports? [Standards as barriers versus standards as catalysts: assessing the impact of HACCP implementation on US seafood imports]," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 47(1), pages 247-272.
    17. Mathieu Couttenier & Raphael Soubeyran, 2010. "Civil War in a Globalized World: Diplomacy and Trade," Working Papers 10-02, LAMETA, Universtiy of Montpellier, revised Feb 2010.
    18. repec:hal:wpspec:info:hdl:2441/dambferfb7dfprc9m01g1j1k2 is not listed on IDEAS
    19. Lavallée, Emmanuelle & Lochard, Julie, 2015. "The comparative effects of independence on trade," Journal of Comparative Economics, Elsevier, vol. 43(3), pages 613-632.
    20. Frank, Jonas, 2018. "The effects of economic sanctions on trade: New evidence from a panel PPML gravity approach," Hohenheim Discussion Papers in Business, Economics and Social Sciences 17-2018, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    21. Muhammad ISHAQ & Qing PING & Zahoorul HAQ & Chongguang LI & Chen TONG, 2016. "Maximum residue limits and agrifood exports of China: choosing the best estimation technique," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(2), pages 78-92.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uto:dipeco:202206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piero Cavaleri or Marina Grazioli (email available below). General contact details of provider: https://edirc.repec.org/data/detorit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.