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Buying Friends? The Importance of Economic Flows in Assembling the Iraq War Coalition

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  • Riegler Robert
  • Lis Piotr

    (Coventry University Business School, School of Economics, Finance and Accounting, Priory Street, Coventry, CV1 5FB, United Kingdom of Great Britain and Northern Ireland)

  • Hisarciklilar Mehtap

    (Staffordshire University, School of Business, Leadership and Economics, Stoke-on-Trent, ST4 2DF, United Kingdom of Great Britain and Northern Ireland)

Abstract

Economic ties between countries are likely to influence the alignment of their international policies. This paper investigates whether countries’ historical economic ties with the United States and their expectation of changes in future economic flows had a role in their decision to join the US-led coalition in Iraq from 2003 onwards. We use data on 115 countries over the period 2003–2009 to estimate panel random effects probit models of war coalition participation. We measure the intensity of economic ties with three variables: bilateral trade flows between the partner country and the US as well as FDI and aid flows from the US to the partner country. Our results suggest that both good trade relations prior to the conflict and the prospects of their further improvements increase the willingness of countries to join the coalition. In spite of the anecdotal evidence, we find no empirical evidence that the dependence on American FDI or aid affected countries’ decision on Iraq war participation.

Suggested Citation

  • Riegler Robert & Lis Piotr & Hisarciklilar Mehtap, 2017. "Buying Friends? The Importance of Economic Flows in Assembling the Iraq War Coalition," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 23(4), pages 1-6, December.
    • Handle: RePEc:bpj:pepspp:v:23:y:2017:i:4:p:6:n:9
    DOI: 10.1515/peps-2017-0031
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    References listed on IDEAS

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    1. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does US aid buy UN general assembly votes? A disaggregated analysis," Public Choice, Springer, vol. 136(1), pages 139-164, July.
    2. Lis Piotr, 2014. "Terrorism, Armed Conflict and Foreign Aid," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(4), pages 1-13, December.
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    4. Jude, Cristina & Silaghi, Monica Ioana Pop, 2016. "Employment effects of foreign direct investment: New evidence from Central and Eastern European countries," International Economics, Elsevier, vol. 145(C), pages 32-49.
    5. Bandyopadhyay, Subhayu & Lahiri, Sajal & Younas, Javed, 2015. "Financing growth through foreign aid and private foreign loans: Nonlinearities and complementarities," Journal of International Money and Finance, Elsevier, vol. 56(C), pages 75-96.
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    Cited by:

    1. Arye L. Hillman, 2021. "Harming a favored side: an anomaly with supreme values and good intentions," Public Choice, Springer, vol. 186(3), pages 275-285, March.

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