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Territory flows and trade flows between 1870 and 2008

Author

Listed:
  • Hu, Yushan
  • Li, Ben G.
  • Zhang, Penglong

Abstract

Countries gain and lose territories over time, generating territory flows that represent the transfer of territorial sovereignty. Countries also export and import goods, creating trade flows that represent the transfer of merchandise ownership. We find a substitution between these two international flows during the years 1870 and 2008; that is, country pairs with greater trade flows have smaller territory flows. This indicates how international trade enhances international security: reciprocal goods transactions discourage irreciprocal territorial exchanges.

Suggested Citation

  • Hu, Yushan & Li, Ben G. & Zhang, Penglong, 2024. "Territory flows and trade flows between 1870 and 2008," Journal of Economic Behavior & Organization, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:jeborg:v:228:y:2024:i:c:s0167268124004013
    DOI: 10.1016/j.jebo.2024.106787
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    More about this item

    Keywords

    Territorial disputes; Trade; Trade agreements;
    All these keywords.

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F15 - International Economics - - Trade - - - Economic Integration
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies

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