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Centrality in Trade Networks and Investment in Security

Author

Listed:
  • Bove Vincenzo

    (Department of Politics and International Studies, University of Warwick, Social Science Building, Coventry CV4 7AL, UK)

  • Elia Leandro

    (European Commission, Joint Research Centre)

  • Pelliccia Marco

    (Department of Economics, Birkbeck College, University of London)

Abstract

The contemporary empirical literature on military spending has focused on institutional and conflict factors, and although has acknowledged the role of trade openness, it has not taken into account the position of a state in the trade network. Building on the concept of network centrality, we claim that the structure of trade networks affects the optimal investment in security, and that a country’s level of military spending is a function of its strategic position in the global network of a critical commodity, such as oil. Our empirical results show that network centrality constrains military spending.

Suggested Citation

  • Bove Vincenzo & Elia Leandro & Pelliccia Marco, 2016. "Centrality in Trade Networks and Investment in Security," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(1), pages 27-39, January.
    • Handle: RePEc:bpj:pepspp:v:22:y:2016:i:1:p:27-39:n:3
    DOI: 10.1515/peps-2015-0042
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    References listed on IDEAS

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    More about this item

    Keywords

    military spending; trade; network;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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