Industry-Level Supply-Side Market Concentration and the Price of Military Conflict
In economics, supply-side market concentration profoundly impacts firm behavior. This dimension of economic interaction can be used to predict the conflict initiation of countries in the context of international relations. The following investigation uses industry-level trade data to define four new market concentration variables, which are incorporated into the traditional model of military conflict. The article finds that high dyadic market concentration significantly decreases the likelihood that a state initiated military conflict in the period 1962â€“2001, and argues that market concentration is an important factor in the tradeâ€“conflict relationship.
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