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Diplomatic Intervention in Civil War : Trade for All or Trade for One?

  • Mathieu COUTTENIER
  • Raphael SOUBEYRAN

This paper looks at whether diplomatic intervention in civil war has affected trade over the post World War II period. We show that the intervener derives no commercial advantage from diplomatic intervention ; trade between the intervener and the target country does not increase more than trade between the target country and its other partners. However, we find that diplomatic intervention has a positive and persistent effect on trade between the target country and all its partners. Keywords : Civil War, Trade, Foreign Influence, Gravity Equation.

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File URL: http://www.lameta.univ-montp1.fr/Documents/DR2011-08.pdf
File Function: First version, 2011
Download Restriction: no

Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 11-08.

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Length: 29 pages
Date of creation: Apr 2011
Date of revision: Apr 2011
Handle: RePEc:lam:wpaper:11-08
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Web page: http://www.lameta.univ-montp1.fr/

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  1. Mathieu Couttenier & Raphael Soubeyran, 2010. "Civil War in a Globalized World: Diplomacy and Trade," Working Papers 10-02, LAMETA, Universtiy of Montpellier, revised Feb 2010.
  2. Philippe Martin & Thierry Mayer & Mathias Thoenig, 2008. "Civil Wars and International Trade," Sciences Po publications info:hdl:2441/10149, Sciences Po.
  3. Baldwin, Richard & Taglioni, Daria, 2006. "Gravity for Dummies and Dummies for Gravity Equations," CEPR Discussion Papers 5850, C.E.P.R. Discussion Papers.
  4. Andrei A. Levchenko, 2004. "Institutional Quality and International Trade," IMF Working Papers 04/231, International Monetary Fund.
  5. Philippe Martin & Thierry Mayer & Mathias Thoenig, 2008. "Make Trade Not War?," Review of Economic Studies, Oxford University Press, vol. 75(3), pages 865-900.
  6. Head, Keith & Mayer, Thierry & Ries, John, 2008. "The Erosion of Colonial Trade Linkages After Independence," CEPR Discussion Papers 6951, C.E.P.R. Discussion Papers.
  7. Daniel Berger & William Easterly & Nathan Nunn & Shanker Satyanath, 2013. "Commercial Imperialism? Political Influence and Trade during the Cold War," American Economic Review, American Economic Association, vol. 103(2), pages 863-96, April.
  8. Barry Eichengreen & Douglas A. Irwin, 1996. "The Role of History in Bilateral Trade Flows," NBER Working Papers 5565, National Bureau of Economic Research, Inc.
  9. Vincent Vicard, 2009. "On Trade Creation and Regional Trade Agreements: Does Depth Matter?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00395100, HAL.
  10. Yeats, Alexander J, 1990. "Do African Countries Pay More for Imports? Yes," World Bank Economic Review, World Bank Group, vol. 4(1), pages 1-20, January.
  11. Baier, Scott L. & Bergstrand, Jeffrey H., 2004. "Economic determinants of free trade agreements," Journal of International Economics, Elsevier, vol. 64(1), pages 29-63, October.
  12. Keith Head & John Ries, 2010. "Do trade missions increase trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 754-775, August.
  13. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
  14. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation," Journal of International Economics, Elsevier, vol. 77(1), pages 77-85, February.
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