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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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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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  1. Keith Head & John Ries, 2010. "Do trade missions increase trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 754-775, August.
  2. Baldwin, Richard & Taglioni, Daria, 2006. "Gravity for Dummies and Dummies for Gravity Equations," CEPR Discussion Papers 5850, C.E.P.R. Discussion Papers.
  3. Berger, Daniel & Easterly, William & Nunn, Nathan & Satyanath, Shanker, 2013. "Commercial Imperialism? Political Influence and Trade during the Cold War," Scholarly Articles 11986334, Harvard University Department of Economics.
  4. Martin, Philippe & Mayer, Thierry & Thoenig, Mathias, 2008. "Civil Wars and International Trade," CEPR Discussion Papers 6659, C.E.P.R. Discussion Papers.
  5. Thierry Mayer & Keith Head & John Ries, 2008. "The Erosion of Colonial Trade Linkages after Independence," Working Papers 2008-27, CEPII research center.
  6. Vincent Vicard, 2009. "On trade creation and regional trade agreements: does depth matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(2), pages 167-187, July.
  7. Barry Eichengreen & Douglas A. Irwin, 1996. "The Role of History in Bilateral Trade Flows," NBER Working Papers 5565, National Bureau of Economic Research, Inc.
  8. Martin, Philippe & Mayer, Thierry & Thoenig, Mathias, 2005. "Make Trade not War?," CEPR Discussion Papers 5218, C.E.P.R. Discussion Papers.
  9. 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.
  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. 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.
  12. Andrei A. Levchenko, 2007. "Institutional Quality and International Trade," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 791-819.
  13. 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.
  14. 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.
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