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A Simultaneous-Equations Model of Trade, Conflict, and Cooperation

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  • Rafael Reuveny

    () (Indiana University, Bloomington, IN, USA)

  • Heejoon Kang

Abstract

A simultaneous-equations model is developed for the reciprocal relationship among bilateral trade value, conflict, and cooperation by modeling the actions of exporters, importers, and governments. The model is estimated separately for each of the dyads among the US, the USSR, China, Japan, and (West) Germany for the yearly data from 1948 to 1992. The direction of the effects of conflict or cooperation on trade and that of trade on conflict or cooperation are generally mixed, as expected. Certain reciprocal relationship patterns emerge depending on whether countries belong to the East or West block. Copyright 2003 Blackwell Publishing Ltd..

Suggested Citation

  • Rafael Reuveny & Heejoon Kang, 2003. "A Simultaneous-Equations Model of Trade, Conflict, and Cooperation," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 279-295, May.
  • Handle: RePEc:bla:reviec:v:11:y:2003:i:2:p:279-295
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    Cited by:

    1. Raul Caruso & Marco Di Domizio & David A. Savage, 2015. "Hic Sunt Leones! The role of national identity on aggressiveness between national football teams," DISCE - Quaderni dell'Istituto di Politica Economica ispe0076, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. Shiro Armstrong, 2009. "Japanese FDI in China - determinants and performance," EABER Working Papers 22854, East Asian Bureau of Economic Research.
    3. Vincenzo Bove & Leandro Elia & Petros G. Sekeris, 2014. "US Security Strategy and the Gains from Bilateral Trade," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 863-885, November.
    4. Jie Cai & Lian An, 2014. "Is Protectionism Rational Under the Financial Crisis? Analysis from the Perspective of International Political Relations," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(3), pages 278-299, March.
    5. repec:bla:kyklos:v:70:y:2017:i:4:p:511-545 is not listed on IDEAS

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