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Does International Trade Reduce Political Disputes?

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  • Hailay Gebretinsae Beyene

Abstract

The effect of economic integration and other factors on interstate conflict has been examined with a delimited geographical scope. A logistic regression analysis is adopted with one-year lagged independent variables regressed on dependent variable of interstate conflict. It is revealed that the pacification effect of economic openness and economic dependence on trade of the East African countries—Djibouti, Eritrea, Ethiopia, Kenya, Somalia, Sudan, Tanzania and Uganda—is significant. In addition, it is found that an improvement in the democratic situation of the dyads reduces the likelihood of eruption of interstate conflict in the region. The article has uncovered that higher national capability asymmetry in East African region among the specified countries leads to an increase in the possibility of violence.

Suggested Citation

  • Hailay Gebretinsae Beyene, 2015. "Does International Trade Reduce Political Disputes?," Foreign Trade Review, , vol. 50(2), pages 99-117, May.
    • Handle: RePEc:sae:fortra:v:50:y:2015:i:2:p:99-117
    DOI: 10.1177/0015732515572058
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    References listed on IDEAS

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    1. David H. Bearce & Eric O'N. Fisher, 2002. "Economic Geography, Trade, and War," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(3), pages 365-393, June.
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    3. Cullen F. Goenner, 2011. "Simultaneity between Trade and Conflict: Endogenous Instruments of Mass Destruction," Conflict Management and Peace Science, Peace Science Society (International), vol. 28(5), pages 459-477, November.
    4. Jong-Wha Lee & Ju Hyun Pyun, 2016. "Does Trade Integration Contribute to Peace?," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 327-344, February.
    5. Solomon William Polachek, 1980. "Conflict and Trade," Journal of Conflict Resolution, Peace Science Society (International), vol. 24(1), pages 55-78, March.
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    Cited by:

    1. Christos Kollias & Suzanna-Maria Paleologou, 2017. "The Globalization and Peace Nexus: Findings Using Two Composite Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 871-885, April.

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    More about this item

    Keywords

    Democratic situation; economic openness; interstate conflict; national capability; trade dependence;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F01 - International Economics - - General - - - Global Outlook
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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