IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Global Arms Trade Network 1950-2007

  • Anna Larsson Seim
  • Anders Akerman

Using a large dataset covering all trade in military equipment over the period 1950-2007, we address the relationship between differences in polity and arms trade from a novel empirical perspective. We provide evidence on the determinants of link formation at the bilateral level by estimating gravity specifications and study the evolution of the arms trade network at the global level. Throughout the analysis, we exploit the exogenous shift in preferences implied by the collapse of the Soviet Union in 1991 to discriminate between different hypotheses about the underlying incentives for arms trade. We find a stable negative relationship between differences in polity and the likelihood of arms trade for the duration of the Cold War, but in recent years any negative effects of political differences on the likelihood of arms trade that we find can be entirely accounted for by exporter and importer fixed effects. Our findings thus suggest that democracies have not, on average, discriminated against autocracies when trading arms in the post-Cold War era. The results from the net-work analysis reveal that the network as a whole changes drastically over the sample period in several respects. In addition to comparing the network to other empirical networks, we are able to document important differences between the workings of the NATO and Warsaw Pact sub-networks prior to 1991.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://degit.sam.sdu.dk/papers/degit_17/C017_055.pdf
Download Restriction: no

Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c017_055.

as
in new window

Length: 29 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:deg:conpap:c017_055
Contact details of provider: Postal: Niels Bohrs Vej 9, 6700 Esbjerg
Phone: +45 6550 2233
Fax: +45 6550 1090
Web page: http://degit.sam.sdu.dk/
Email:


More information through EDIRC

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.:

as in new window
  1. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
  2. Casey B. Mulligan & Ricard Gil & Xavier Sala-i-Martin, 2004. "Do Democracies Have Different Public Policies than Nondemocracies?," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 51-74, Winter.
  3. Robert Ayanian, 1986. "Nuclear consequences of the welfare state," Public Choice, Springer, vol. 49(3), pages 201-222, January.
  4. Gilat Levy & Ronny Razin, 2004. "It Takes Two: An Explanation for the Democratic Peace," Journal of the European Economic Association, MIT Press, vol. 2(1), pages 1-29, 03.
  5. Sandeep Baliga & Tomas Sjostrom, 2003. "Arms Races and Negotiations," Levine's Working Paper Archive 618897000000000766, David K. Levine.
  6. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc.
  7. Dagobert Brito & Michael Intriligator, 1981. "Strategic arms limitation treaties and innovations in weapons technology," Public Choice, Springer, vol. 37(1), pages 41-59, January.
  8. Marc Flandreau & Clemens Jobst, 2005. "The Ties that Divide: A Network Analysis of the International Monetary System, 1890-1910," Sciences Po publications n°5129, Sciences Po.
  9. Martin, Philippe & Mayer, Thierry & Thoenig, Mathias, 2005. "Make Trade not War?," CEPR Discussion Papers 5218, C.E.P.R. Discussion Papers.
  10. Margherita Comola, 2012. "Democracies, Politics, and Arms Supply," Review of International Economics, Wiley Blackwell, vol. 20(1), pages 150-163, 02.
  11. Luca De Benedictis & Lucia Tajoli, 2011. "The World Trade Network," The World Economy, Wiley Blackwell, vol. 34(8), pages 1417-1454, 08.
  12. Reuven Glick & Alan M. Taylor, 2010. "Collateral Damage: Trade Disruption and the Economic Impact of War," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 102-127, February.
  13. Lucrezia Reichlin, 1997. "The arms trade: discussion," ULB Institutional Repository 2013/10205, ULB -- Universite Libre de Bruxelles.
  14. Sanjeev Goyal & Marco van der Leij & José Luis Moraga-Gonzàlez, 2004. "Economics: An Emerging Small World?," Working Papers 2004.84, Fondazione Eni Enrico Mattei.
  15. Levine, Paul & Smith, Ron, 1995. "The Arms Trade and Arms Control," Economic Journal, Royal Economic Society, vol. 105(429), pages 471-84, March.
  16. Sandeep Baliga & Tomas Sj�str�m, 2004. "Arms Races and Negotiations," Review of Economic Studies, Oxford University Press, vol. 71(2), pages 351-369.
  17. Marc Flandreau & Clemens Jobst, 2009. "The Empirics of International Currencies: Network Externalities, History and Persistence," Economic Journal, Royal Economic Society, vol. 119(537), pages 643-664, 04.
  18. Cowen, Tyler, 1990. " Economic Effects of a Conflict-Prone World Order," Public Choice, Springer, vol. 64(2), pages 121-34, February.
  19. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
  20. Paul Levine & Ron Smith, 1997. "The arms trade: winners and losers," Economic Policy, CEPR;CES;MSH, vol. 12(25), pages 335-370, October.
  21. Intriligator, Michael D, 1975. "Strategic Considerations in the Richardson Model of Arms Races," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 339-53, April.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:deg:conpap:c017_055. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jan Pedersen)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.