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Conflict and cooperation with trade partners

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  • Timothy M. Peterson
  • Yuleng Zeng

Abstract

Escalating political conflict between major trade partners such as the US and China appears puzzling given theories linking trade to pacific international relations. We reconsider theories on bilateral trade, exposure to the global economy, and politics in order to explain contemporary events. Our approach departs from previous work in three key ways: we examine a broader range of conflictual and cooperative interactions together; we assume leaders are responsive to interests opposed to trade as well as to those who benefit; and we reconceptualize what it means to be a “major trade partner,” presenting a new definition that varies with the dispersion of a state’s trade across partners rather than merely dollar value or GDP composition of trade. We demonstrate that states generally initiate more conflict and more cooperation with major trade partners; and while higher exposure to the global economy reduces conflict initiation against major trade partners, it also reduces cooperation. Simultaneously, higher exposure to the global economy is associated with more initiation of cooperation with non-major trade partners. Using events data spanning 1995–2012, we find empirical support for our expectations.

Suggested Citation

  • Timothy M. Peterson & Yuleng Zeng, 2021. "Conflict and cooperation with trade partners," International Interactions, Taylor & Francis Journals, vol. 47(2), pages 266-290, March.
  • Handle: RePEc:taf:ginixx:v:47:y:2021:i:2:p:266-290
    DOI: 10.1080/03050629.2020.1835892
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    Cited by:

    1. Iku Yoshimoto, . "Globalized production processes and foreign governmental lobbies: Analysing the United States Foreign Agents Registration Act reports," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    2. repec:zbw:bofitp:2021_005 is not listed on IDEAS
    3. Bora Jeong & Hoon Lee, 2021. "US–China commercial rivalry, great war and middle powers," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 24(2), pages 135-148, June.
    4. Davydov, Denis & Sihvonen, Jukka & Solanko, Laura, 2021. "Who cares about sanctions? Observations from annual reports of European firms," BOFIT Discussion Papers 5/2021, Bank of Finland, Institute for Economies in Transition.
    5. Davydov, Denis & Sihvonen, Jukka & Solanko, Laura, 2021. "Who cares about sanctions? Observations from annual reports of European firms," BOFIT Discussion Papers 5/2021, Bank of Finland Institute for Emerging Economies (BOFIT).

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