Civil Wars and International Trade
This article analyzes empirically the relationship between civil wars and international trade. We first show that trade destruction due to civil wars is very large and persistent and increases with the severity of the conflict. We then identify two effects that trade can have on the risk of civil conflicts: It may act as a deterrent if trade gains are put at risk during civil wars, but it may also act as an insurance if international trade provides a substitute to internal trade during civil wars. We find support for the presence of these two mechanisms and conclude that trade openness may deter the most severe civil wars (those that destroy the largest amount of trade) but may increase the risk of lower-scale conflicts. (JEL: F10, F51, F52, F59) (c) 2008 by the European Economic Association.
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Volume (Year): 6 (2008)
Issue (Month): 2-3 (04-05)
Pages: 541-550
| Handle: | RePEc:tpr:jeurec:v:6:y:2008:i:2-3:p:541-550 |
| Contact details of provider: | Web page: http://www.mitpressjournals.org/jeea
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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