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Guns, Butter, and Openness: On the Relationship between Security and Trade

Author

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  • Stergios Skaperdas
  • Constantinos Syropoulos

Abstract

To begin discussing the classical liberal and realist views we analyze a simple model that allows for possible insecurity as well as trade. We examine an economic environment in which two "small" countries dispute a resource that can be used in the production of tradeables. Claims on the resource are developed through arming. We analyze the effects of different trade regimes on arming and on the welfare of each country.
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Suggested Citation

  • Stergios Skaperdas & Constantinos Syropoulos, 2001. "Guns, Butter, and Openness: On the Relationship between Security and Trade," American Economic Review, American Economic Association, vol. 91(2), pages 353-357, May.
  • Handle: RePEc:aea:aecrev:v:91:y:2001:i:2:p:353-357
    Note: DOI: 10.1257/aer.91.2.353
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    References listed on IDEAS

    as
    1. Solomon William Polachek, 1980. "Conflict and Trade," Journal of Conflict Resolution, Peace Science Society (International), vol. 24(1), pages 55-78, March.
    2. Martin C. McGuire, 2000. "Provision for Adversity," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 730-752, December.
    3. Anderton, Charles H & Anderton, Roxane A & Carter, John R, 1999. "Economic Activity in the Shadow of Conflict," Economic Inquiry, Western Economic Association International, vol. 37(1), pages 166-179, January.
    4. James E. Anderson & Douglas Marcouiller, 1997. "Trade and Security,I: Anarchy," NBER Working Papers 6223, National Bureau of Economic Research, Inc.
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    More about this item

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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