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

Author

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

Abstract

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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Suggested Citation

  • Bhattacharya, Prasad S. & Thomakos, Dimitrios D., 2006. "Trade, openness and domestic conflict: an empirical investigation for Latin America," Working Papers eco_2006_02, Deakin University, Department of Economics.
    • Handle: RePEc:dkn:econwp:eco_2006_02
    DOI: 10.15355/epsj.2.2.77
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    Cited by:

    1. Dushyant Kumar & Prabal Roy Chowdhury, 2015. "Conflict and development," Discussion Papers 15-05, Indian Statistical Institute, Delhi.
    2. Tereza Nìmeèková & Arshad Hayat, 2022. "Does trade openness improve the quality of domestic institutions? Evidence from Africa," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(4), pages 881-908, December.

    More about this item

    Keywords

    Trade Openness; Domestic Conflict; Ordinal Regression; Markov Switching; Proportional Hazard Model; Latin America;
    All these keywords.

    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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