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A Trade Institution as a Peaceful Institution? A Contribution to Integrative Theory

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  • Raul Caruso

    (Universitá Cattolica del Sacro Cuore di Milano Milan, Italy, raul.caruso@unicatt.it)

Abstract

Recent studies emphasize the occurrence of conflict as a rational economic activity along with production and exchange. Agents are assumed to divide their efforts into fighting and productive activities, as commonly denoted by “guns†and “butter.†This article tries to go beyond this “manichean†idea, assuming Boulding's concept of “integrative system.†In particular, the article investigates whether a trade institution committed to free and fair trade could foster “peaceful†benefits for member countries. The analysis, produced in a very simplified world, counts as a founding pillar of the Contest Success Function. The results of the model suggest that in an institutionalized scenario, agents gain more both in terms of economic utility and in terms of peace than in “continuing conflict†and “obstructed trade†scenarios.

Suggested Citation

  • Raul Caruso, 2006. "A Trade Institution as a Peaceful Institution? A Contribution to Integrative Theory," Conflict Management and Peace Science, Peace Science Society (International), vol. 23(1), pages 53-72, February.
    • Handle: RePEc:sae:compsc:v:23:y:2006:i:1:p:53-72
    DOI: 10.1080/07388940500503812
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    7. Sakshi Gupta & Ram Singh, 2018. "On Existence and Properties of Pure-strategy Equilibria under Contests," Working papers 288, Centre for Development Economics, Delhi School of Economics.
    8. Caruso Raul, 2006. "Conflict and Conflict Management with Interdependent Instruments and Asymmetric Stakes, (The Good-Cop and the Bad-Cop Game)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 12(1), pages 1-53, September.
    9. Caruso, Raul, 2011. "International Relative Prices and Civil Wars in Sub-Saharan Africa. Theory and Evidence over the period (1995-2006)," MPRA Paper 29761, University Library of Munich, Germany.
    10. Kahn Yehudith & Arieli Tamar, 2020. "Post Conflict Normalization through Trade Preferential Agreements: Egypt, Israel and the Qualified Industrial Zones," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(4), pages 1-27, December.
    11. Raul Caruso, 2010. "Butter, Guns And Ice-Cream Theory And Evidence From Sub-Saharan Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(3), pages 269-283.
    12. Raul Caruso, 2009. "Spesa pubblica e criminalità organizzata in Italia: evidenza empirica su dati Panel nel periodo 1997-2003," Economia & lavoro, Carocci editore, issue 1, pages 1-73.
    13. Xiang Jun & Primiano Christopher B. & Huang Wei-hao, 2015. "Aggressive or Peaceful Rise? An Empirical Assessment of China’s Militarized Conflict, 1979–2010," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(3), pages 301-325, August.
    14. Raul Caruso, 2007. "Continuing Conflict and Stalemate: A note," Economics Bulletin, AccessEcon, vol. 4(17), pages 1-8.
    15. Polachek Solomon W, 2011. "Current Research and Future Directions in Peace Economics: Trade Gone Awry," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-14, January.
    16. Hernando Zuleta & Juanita Villaveces, 2008. "Conflict and negotiation: a game theoretical approach," Documentos de Trabajo 5148, Universidad del Rosario.
    17. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
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    19. Caruso Raul, 2011. "On the Nature of Peace Economics," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-13, January.
    20. Stauvermann Peter J., 2012. "Accumulation and Growth in the Shadow of Conflicts," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-30, April.
    21. Massoud Tansa G. & Magee Christopher S., 2012. "Trade and Political, Military, and Economic Relations," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-39, May.
    22. Economou Emmanouil M.L. & Kyriazis Nicholas C., 2016. "Choosing Peace Instead of War. A Lesson from Athenian Democracy," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(2), pages 191-212, April.
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    24. Raul Caruso, 2009. "The Basic Economics of Match Fixing in Sport Tournaments," Economic Analysis and Policy, Elsevier, vol. 39(3), pages 355-377, December.
    25. Mintz Alex & Heo Uk, 2014. "Triads in International Relations: The Effect of Superpower Aid, Trade, and Arms Transfers on Conflict in the Middle East," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(3), pages 441-459, August.

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