Trade and Insecure Resources: Implications for Welfare and Comparative Advantage
We augment the canonical neoclassical model of trade to allow for interstate disputes over land, oil, water, or other resources. Different trade regimes imply different costs of such disputes in terms of arming. Depending on world prices, free trade can intensify arming to such an extent that the additional security costs swamp the traditional gains from trade and thus render autarky more desirable for one or all rival states. Furthermore, contestation of resources can reverse a country's apparent comparative advantage relative to its comparative advantage in the absence of conflict. And, where such conflict is present, comparisons of autarkic prices to world prices could be inaccurate predictors of trade patterns.
|Date of creation:||08 Jul 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.lebow.drexel.edu/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James E. Anderson & Douglas Marcouiller, 2005.
"Anarchy And Autarky: Endogenous Predation As A Barrier To Trade,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(1), pages 189-213, 02.
- James E. Anderson & Douglas Marcouiller, S.J., 1997. "Anarchy and Autarky: Endogenous Predation as a Barrier to Trade," Boston College Working Papers in Economics 383, Boston College Department of Economics, revised 01 Oct 2001.
- Torvik, Ragnar, 2002. "Natural resources, rent seeking and welfare," Journal of Development Economics, Elsevier, vol. 67(2), pages 455-470, April.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006.
"Institutions and the Resource Curse,"
Royal Economic Society, vol. 116(508), pages 1-20, 01.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004. "Institutions and the Resource Curse," DEGIT Conference Papers c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
- Mehlum, Halvor & Moene, Karl-Ove & Torvik, Ragnar, 2003. "Institutions and the resource curse," Memorandum 29/2002, Oslo University, Department of Economics.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," GE, Growth, Math methods 0210004, EconWPA.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," Development and Comp Systems 0210003, EconWPA.
- Rowe, David M., 1999. "World Economic Expansion and National Security in Pre–World War I Europe," International Organization, Cambridge University Press, vol. 53(02), pages 195-231, March.
- Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
- Skaperdas, Stergios, 1996.
"Contest Success Functions,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-90, February.
- James Brander & M. Scott Taylor, 1997.
"International Trade Between Consumer and Conservationist Countries,"
NBER Working Papers
6006, National Bureau of Economic Research, Inc.
- Brander, James A. & Scott Taylor, M., 1997. "International trade between consumer and conservationist countries," Resource and Energy Economics, Elsevier, vol. 19(4), pages 267-297, November.
- James A. Brander & M. Scott Taylor, 1997.
"International Trade and Open-Access Renewable Resources: The Small Open Economy Case,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 30(3), pages 526-52, August.
- James A. Brander & M. Scott Taylor, 1995. "International Trade and Open Access Renewable Resources: The Small Open Economy Case," NBER Working Papers 5021, National Bureau of Economic Research, Inc.
- Hotte, Louis & Long, Ngo Van & Tian, Huilan, 2000. "International trade with endogenous enforcement of property rights," Journal of Development Economics, Elsevier, vol. 62(1), pages 25-54, June.
- Daron Acemoglu & Mikhail Golosov & Aleh Tsyvinski & Pierre Yared, 2011.
"A Dynamic Theory of Resource Wars,"
NBER Working Papers
16682, National Bureau of Economic Research, Inc.
- Michelle R. Garfinkel & Stergios Skaperdas & Constantinos Syropoulos, 2006.
"Globalization and Domestic Conflict,"
050601, University of California-Irvine, Department of Economics.
- Michelle R. Garfinkel & Stergios Skaperdas & Constantinos Syropoulos, 2005. "Globalization and Domestic Conflict," CESifo Working Paper Series 1510, CESifo Group Munich.
- Michelle R. Garfinkel & Stergios Skaperdas & Constantinos Syropoulos, 2005. "Globalization and Domestic Conflict," International Trade 0507005, EconWPA.
- Ronald Findlay & Kevin H. O'Rourke, 2007.
"Power and Plenty: Trade, War and the World Economy in the Second Millennium (Preface),"
Trinity Economics Papers
tep0107, Trinity College Dublin, Department of Economics.
- Ronald Findlay & Kevin H. O'Rourke, 2007. "Power and Plenty: Trade, War and the World Economy in the Second Millennium (Preface)," The Institute for International Integration Studies Discussion Paper Series iiisdp205, IIIS.
- Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
- Acemoglu, Daron & Jensen, Martin Kaae, 2009.
"Aggregate Comparative Statics,"
CEPR Discussion Papers
7254, C.E.P.R. Discussion Papers.
- Shogren, Jason & Margolis, Michael, 2002. "Unprotected Resources and Voracious World Markets," Discussion Papers dp-02-30, Resources For the Future.
- 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.
- Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557.
When requesting a correction, please mention this item's handle: RePEc:ris:drxlwp:2012_008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard C. Barnett)
If references are entirely missing, you can add them using this form.