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Economic Geography, Trade, and War

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  • David H. Bearce
  • Eric O'N. Fisher

Abstract

An agent-based model in which economic exchange and military conflict are emergent processes is used to explore the relationship between trade and war. The model of exchange is an applied analysis of the economics of trading networks. The model of conflict treats war as a breakdown in interstate bargaining due to incomplete information. The simulations explore how initial economic geography, state revisionism, defensive advantage, and technological advancement akin to globalization affect both trade and war. The results show that the relationship between trade and war depends on third factors, and an inverse relationship between trade and war emerges from compact geographies with revisionist states.
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Suggested Citation

  • David H. Bearce & Eric O'N. Fisher, 2001. "Economic Geography, Trade, and War," Working Papers 01-06, Ohio State University, Department of Economics.
    • Handle: RePEc:osu:osuewp:01-06
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    2. Levy, Amnon & Faria, João Ricardo, 2002. "Conflict, Political Structure and Economic Growth in Dual-Population Lands," Economics Working Papers wp02-19, School of Economics, University of Wollongong, NSW, Australia.
    3. Lingyu Lu & Cameron G. Thies, 2010. "Trade Interdependence and the Issues at Stake in the Onset of Militarized Conflict," Conflict Management and Peace Science, Peace Science Society (International), vol. 27(4), pages 347-368, September.
    4. Michelle A. Benson, 2005. "The Relevance of Politically Relevant Dyads in the Study of Interdependence and Dyadic Disputes," Conflict Management and Peace Science, Peace Science Society (International), vol. 22(2), pages 113-133, April.
    5. Hicks Michael J. & Smith Jeff, 2009. "Warfare, Civil Conflict and the Spatial Impacts on Domestic Investment: Evidence from South America, 1950-2000," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 15(1), pages 102-113, November.
    6. Hailay Gebretinsae Beyene, 2015. "Does International Trade Reduce Political Disputes?," Foreign Trade Review, , vol. 50(2), pages 99-117, May.
    7. Levy, Amnon, 2004. "Trucefully Yours: Hatred and the Prospects of Genuine and Stable Peace," Economics Working Papers wp04-06, School of Economics, University of Wollongong, NSW, Australia.
    8. Dmitry Brizhinev & Nathan Ryan & Roger Bradbury, 2018. "Modelling Hegemonic Power Transition in Cyberspace," Complexity, Hindawi, vol. 2018, pages 1-13, April.
    9. Faruk Balli & Hatice Ozer Balli & Mudassar Hasan & Russell Gregory-Allen, 2022. "Geopolitical risk spillovers and its determinants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(2), pages 463-500, April.

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    JEL classification:

    • F0 - International Economics - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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