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Exploring multi-country dynamic relations between trade and conflict

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  • Heejoon Kang
  • Rafael Reuveny

Abstract

Most previous studies use a dyad as the unit of analysis and ignore the simultaneity of trade and conflict. The goal of this paper is to find out whether multi-country trade and conflict relations are statistically significant and the nature of those relations. We employ a multi-country, simultaneous framework, using the United States-Soviet Union-(West) Germany triangle as an example. The empirical analysis, from the first quarter of 1963 to the last quarter of 1991, demonstrates that trade and conflict are significantly interrelated, with positive reciprocity and inertia. Moreover, we find that dyadic flows strongly affect other dyads. The nature of these inter-dyadic effects depends on particular dyads, but both inter- and intra-dyad effects are statistically significant.

Suggested Citation

  • Heejoon Kang & Rafael Reuveny, 2001. "Exploring multi-country dynamic relations between trade and conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(3), pages 175-196.
    • Handle: RePEc:taf:defpea:v:12:y:2001:i:3:p:175-196
    DOI: 10.1080/10430710108404983
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    References listed on IDEAS

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    1. Garfinkel,Michelle R. & Skaperdas,Stergios (ed.), 1996. "The Political Economy of Conflict and Appropriation," Cambridge Books, Cambridge University Press, number 9780521560634, September.
    2. Peter A.G. van Bergeijk, 1994. "Economic Diplomacy, Trade And Commercial Policy," Books, Edward Elgar Publishing, number 447.
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    Cited by:

    1. Scott L. Kastner, 2007. "When Do Conflicting Political Relations Affect International Trade?," Journal of Conflict Resolution, Peace Science Society (International), vol. 51(4), pages 664-688, August.
    2. Rafael Reuveny & William R. Thompson, 2002. "World Economic Growth, Northern Antagonism, and North-south Conflict," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(4), pages 484-514, August.

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