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The global arms trade network 1950–2007

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  • Akerman, Anders
  • Seim, Anna Larsson

Abstract

Using SIPRI data on all international transfers of major conventional weapons 1950–2007, we study the relationship between differences in polity and arms trade. To study whether states tend to trade arms within their political vicinity we estimate gravity models of the likelihood of trade at the bilateral level and study the evolution of the global network over time. We find a stable negative relationship between differences in polity and the likelihood of arms trade for the duration of the Cold War, but not in recent years. In line with these results, the global arms trade network changes drastically over the sample period in several respects: it grows more dense, clustered and decentralized over time. The differences between the NATO and Warsaw Pact sub-networks that we find corroborate the common perception that the Warsaw Pact was more strongly centralized around the USSR than NATO around the UK, the US and France.

Suggested Citation

  • Akerman, Anders & Seim, Anna Larsson, 2014. "The global arms trade network 1950–2007," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 535-551.
  • Handle: RePEc:eee:jcecon:v:42:y:2014:i:3:p:535-551
    DOI: 10.1016/j.jce.2014.03.001
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    References listed on IDEAS

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    Cited by:

    1. Nicholas Apergis & Matteo Bonato & Rangan Gupta & Clement Kyei, 2016. "Does Geopolitical Risks Predict Stock Returns and Volatility of Leading Defense Companies? Evidence from a Nonparametric Approach," Working Papers 201671, University of Pretoria, Department of Economics.
    2. João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
    3. König, Michael D. & Tessone, Claudio J. & Zenou, Yves, 2014. "Nestedness in networks: A theoretical model and some applications," Theoretical Economics, Econometric Society, vol. 9(3), September.
    4. Florian Johannsen & Inmaculada Martínez-Zarzoso, "undated". "Political Determinants of the Extensive and Intensive Margins of International Arms Transfers," Ibero America Institute for Econ. Research (IAI) Discussion Papers 228, Ibero-America Institute for Economic Research.
    5. repec:taf:apeclt:v:24:y:2017:i:1:p:45-48 is not listed on IDEAS
    6. repec:oup:erevae:v:44:y:2017:i:4:p:592-633. is not listed on IDEAS
    7. De Benedictis Luca & Nenci Silvia & Santoni Gianluca & Tajoli Lucia & Vicarelli Claudio, 2014. "Network Analysis of World Trade using the BACI-CEPII Dataset," Global Economy Journal, De Gruyter, vol. 14(3-4), pages 1-57, October.
    8. Einar Engvig, 2014. "The T - Rex in the Room: Using Network Analysis to Get a Better Grasp of Small Arms Issues," SADO - Working Papers 208, Small Arms Data Observatory.
    9. Vincenzo Bove & Claudio Deiana & Roberto Nistic�, 2018. "Global Arms Trade and Oil Dependence," Journal of Law, Economics, and Organization, Oxford University Press, vol. 34(2), pages 272-299.
    10. Apergis, Emmanuel & Apergis, Nicholas, 2016. "The 11/13 Paris terrorist attacks and stock prices: The case of the international defense industry," Finance Research Letters, Elsevier, vol. 17(C), pages 186-192.
    11. Rossana Mastrandrea & Franco Ruzzenenti & João Amador & Sónia Cabral, 2017. "Who's who in global value chains? A weighted network approach," Working Papers w201707, Banco de Portugal, Economics and Research Department.
    12. Marco Pelliccia, 2015. "Bargaining in Global Communication Networks," Birkbeck Working Papers in Economics and Finance 1507, Birkbeck, Department of Economics, Mathematics & Statistics.

    More about this item

    Keywords

    Arms trade; Network formation; Polity; Cold War;

    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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