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Politics Remains but Economics Leads and Peace Follows: Making a Case for India-Pakistan Peace Process in line with China Model

Author

Listed:
  • Mamoon, Dawood
  • Murshed, S. Mansoob

Abstract

The paper traces the causal links of Indo-Pakistan conflict with trade, military expenditure and democracy under multivariate time series framework from 1950-2005. We find that higher exports to outside world and increased bilateral trade have high propensity to reduce hostilities between both nations. Furthermore, historically high military expenditures in Pakistan have been a direct outcome of continued hostilities in its Eastern borders whereas Indian military expenditure is weakly related with the conflict. Political orientation of both countries does not seem to significantly affect the conflict either. Overall, the findings support the case for liberal (economic) peace than political (democratic) peace.

Suggested Citation

  • Mamoon, Dawood & Murshed, S. Mansoob, 2007. "Politics Remains but Economics Leads and Peace Follows: Making a Case for India-Pakistan Peace Process in line with China Model," MPRA Paper 3075, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:3075
    as

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    File URL: https://mpra.ub.uni-muenchen.de/3075/1/MPRA_paper_3075.pdf
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    References listed on IDEAS

    as
    1. Edward E. Azar, 1980. "The Conflict and Peace Data Bank (COPDAB) Project," Journal of Conflict Resolution, Peace Science Society (International), vol. 24(1), pages 143-152, March.
    2. Katherine Barbieri, 1996. "Economic Interdependence: A Path to Peace or a Source of Interstate Conflict?," Journal of Peace Research, Peace Research Institute Oslo, vol. 33(1), pages 29-49, February.
    3. Polachek, Solomon W, 1997. "Why Democracies Cooperate More and Fight Less: The Relationship between International Trade and Cooperation," Review of International Economics, Wiley Blackwell, vol. 5(3), pages 295-309, August.
    4. Han Dorussen, 1999. "Balance of Power Revisited: A Multi-Country Model of Trade and Conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 36(4), pages 443-462, July.
    5. Polachek, Solomon W. & Seiglie, Carlos, 2007. "Trade, Peace and Democracy: An Analysis of Dyadic Dispute," Handbook of Defense Economics, Elsevier.
    6. Chang, Yuan-Ching & Polachek, Solomon W. & Robst, John, 2004. "Conflict and trade: the relationship between geographic distance and international interactions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(4), pages 491-509, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Inter-state conflict and trade; democracy and conflict; conflict and economic development;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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