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Economic Geography, Trade, and War

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  • David H. Bearce

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  • Eric O'N. Fisher

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Abstract

An agent-based model in which economic exchange and military conflict are emergent processes is used to explore the relationship between trade and war. The model of exchange is an applied analysis of the economics of trading networks. The model of conflict treats war as a breakdown in interstate bargaining due to incomplete information. The simulations explore how initial economic geography, state revisionism, defensive advantage, and technological advancement akin to globalization affect both trade and war. The results show that the relationship between trade and war depends on third factors, and an inverse relationship between trade and war emerges from compact geographies with revisionist states.
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Suggested Citation

  • David H. Bearce & Eric O'N. Fisher, 2001. "Economic Geography, Trade, and War," Working Papers 01-06, Ohio State University, Department of Economics.
  • Handle: RePEc:osu:osuewp:01-06
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    File URL: http://econ.ohio-state.edu/efisher/EGTW.PDF
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    References listed on IDEAS

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    Cited by:

    1. Thierry Vignolo & Agnès d'Artigues, 2003. "Why Global Integration May Lead to Terrorism: An Evolutionary Theory of Mimetic Rivalry," Economics Bulletin, AccessEcon, vol. 6(11), pages 1-8.
    2. Levy, Amnon & Faria, João Ricardo, 2002. "Conflict, Political Structure and Economic Growth in Dual-Population Lands," Economics Working Papers wp02-19, School of Economics, University of Wollongong, NSW, Australia.
    3. Hicks Michael J. & Smith Jeff, 2009. "Warfare, Civil Conflict and the Spatial Impacts on Domestic Investment: Evidence from South America, 1950-2000," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 15(1), pages 1-14, November.
    4. Levy, Amnon, 2004. "Trucefully Yours: Hatred and the Prospects of Genuine and Stable Peace," Economics Working Papers wp04-06, School of Economics, University of Wollongong, NSW, Australia.

    More about this item

    JEL classification:

    • F0 - International Economics - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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