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Trade, openness and domestic conflict: an empirical investigation for Latin America


  • Bhattacharya, Prasad S.
  • Thomakos, Dimitrios D.


The article reports results of an empirical investigation into trade, openness, and domestic conflict for several Latin American countries. It addresses two main issues: (1) whether variations in trade openness affect the likelihood of the onset of domestic conflict and (2) once initiated, how variations in openness affect conflict duration. For the period 1973-1995, and controlling for numerous sociopolitical, institutional, and economic factors, our findings suggest that (1) increased trade openness reduces the chance for domestic conflict onset as well as the intensity of domestic conflict and (2) over-reliance on agricultural exports, which can be a consequence of increased openness, is the main factor sustaining conflict. Conflict mitigation policies should keep in mind the role tradable agricultural goods play in this region of the world.
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  • Bhattacharya, Prasad S. & Thomakos, Dimitrios D., 2006. "Trade, openness and domestic conflict: an empirical investigation for Latin America," Economics Series eco_2006_02, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  • Handle: RePEc:dkn:econwp:eco_2006_02

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    More about this item


    Trade Openness; Domestic Conflict; Ordinal Regression; Markov Switching; Proportional Hazard Model; Latin America;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts


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