Guns, Butter, and Openness: On The Relationship Between Security and Trade
To begin discussing the classical liberal and realist views we analyze a simple model that allows for possible insecurity as well as trade. We examine an economic environment in which two "small" countries dispute a resource that can be used in the production of tradeables. Claims on the resource are developed through arming. We analyze the effects of different trade regimes on arming and on the welfare of each country.
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- Anderton, Charles H & Anderton, Roxane A & Carter, John R, 1999. "Economic Activity in the Shadow of Conflict," Economic Inquiry, Western Economic Association International, vol. 37(1), pages 166-79, January.
- Anderson, James E. & Marcouiller, S.J. Douglas, 1997.
"Trade and Security, I: Anarchy,"
Working Paper Series
477, Research Institute of Industrial Economics.
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