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Why Democracies Cooperate More and Fight Less: The Relationship between International Trade and Cooperation

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  • Polachek, Solomon W

Abstract

This paper provides an economics-based interpretation of the standard finding in the literature that democracies rarely fight each other. A general theory of conflict between two countries is presented and empirical analysis applies this theory to the question of why democracies rarely fight each other. The results show that the fundamental factor in causing bilateral cooperation is trade. Countries seek to protect wealth gained through international trade, therefore trading partners are less combative than nontrading nations. Democratic dyads trade more than nondemocratic dyads, and thus exhibit less conflict and more cooperation. Copyright 1997 by Blackwell Publishing Ltd.

Suggested Citation

  • Polachek, Solomon W, 1997. "Why Democracies Cooperate More and Fight Less: The Relationship between International Trade and Cooperation," Review of International Economics, Wiley Blackwell, vol. 5(3), pages 295-309, August.
  • Handle: RePEc:bla:reviec:v:5:y:1997:i:3:p:295-309
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    1. repec:ksp:journ3:v:4:y:2017:i:3:p:322-328 is not listed on IDEAS
    2. Murshed, S.M. & Mamoon, D., 2007. "On the Costs of Not Loving Thy Neighbour as Thyself," ISS Working Papers - General Series 18748, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    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. Mamoon, Dawood, 2017. "Beyond being Good Neighbors: Proximity to International Markets Matter More for India Pakistan Peace," MPRA Paper 83098, University Library of Munich, Germany.
    5. Erik Gartzke & Dominic Rohner, 2010. "To conquer or compel: war, peace, and economic development," IEW - Working Papers 511, Institute for Empirical Research in Economics - University of Zurich.
    6. repec:agr:journl:v:1(614):y:2018:i:1(614):p:73-94 is not listed on IDEAS
    7. repec:spr:ieaple:v:18:y:2018:i:2:d:10.1007_s10784-018-9387-z is not listed on IDEAS
    8. 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, UniversitĂ  Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    9. Mamoon, Dawood & S. Murshed, Mansoob, 2008. "India and Pakistan: Trading for Peace," MPRA Paper 10432, University Library of Munich, Germany.
    10. Economou Emmanouil M.L. & Kyriazis Nicholas C., 2016. "Choosing Peace Instead of War. A Lesson from Athenian Democracy," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(2), pages 191-212, April.
    11. Shiro Armstrong, 2009. "Japanese FDI in China: determinants and performance," Asia Pacific Economic Papers 378, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    12. Claude Diebolt & Tapas Mishra & Bazoumana Ouattara & Mamata Parhi, 2013. "Democracy and Economic Growth in an Interdependent World," Review of International Economics, Wiley Blackwell, vol. 21(4), pages 733-749, September.
    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, vol. 33(4), pages 491-509, September.
    14. Sebastian Rosato, 2011. "On the Democratic Peace," Chapters,in: The Handbook on the Political Economy of War, chapter 15 Edward Elgar Publishing.
    15. Dawood MAMOON, 2017. "Missing the Peace Train in 2006: Economic and political dynamics of India Pakistan hostility?," Journal of Economic and Social Thought, KSP Journals, vol. 4(3), pages 322-328, Seprember.
    16. Mamoon, Dawood & Murshed, S. Mansoob, 2007. "Politics Remains but Economics Leads and Peace Follows: Making a Case for India-Pakistan Peace Process in line with China Model," MPRA Paper 3075, University Library of Munich, Germany.
    17. Moons, S.J.V. & van Bergeijk, P.A.G., 2013. "A meta-analysis of economic diplomacy and its effect on international economic flows," ISS Working Papers - General Series 50074, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    18. repec:bla:kyklos:v:70:y:2017:i:4:p:511-545 is not listed on IDEAS
    19. Giacomo De Luca & Petros G. Sekeris, 2013. "Deterrence in Contests," Economica, London School of Economics and Political Science, vol. 80(317), pages 171-189, January.
    20. Mamoon, Dawood & S. Mansoob, Murshed, 2008. "On the Conflict Mitigating Effects of Trade: The India-Pakistan Case," MPRA Paper 10431, University Library of Munich, Germany.
    21. Mamoon, Dawood, 2017. "When Armies Don’t Fight: Are Militaries in India and Pakistan Strategically Aligned to Promote Peace in South Asia?," MPRA Paper 82695, University Library of Munich, Germany.
    22. Polachek, Solomon, 2004. "How Outsourcing Affects Bilateral Political Relations," IZA Discussion Papers 1334, Institute for the Study of Labor (IZA).
    23. Massoud Tansa G. & Magee Christopher S., 2012. "Trade and Political, Military, and Economic Relations," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-39, May.
    24. 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.
    25. Dinar, Ariel & Blankespoor, Brian & Dinar, Shlomi & Kurukulasuriya, Pradeep, 2010. "Does precipitation and runoff variability affect treaty cooperation between states sharing international bilateral rivers?," Ecological Economics, Elsevier, vol. 69(12), pages 2568-2581, October.

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