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Economic Geography, Trade, and War

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  • David Bearce and Eric Fisher

Abstract

This paper uses computational techniques to explore the relationship between trade and war. It develops and simulates an agent-based model in which trade and military conflict are emergent processes within a system of states. The model explores different initial configurations, and the economic geography evolves endogenously. Simulations of the model show that some of the same factors promoting trade may also engender military conquest, revealing important qualifications to the conventional wisdom that there is an inverse relationship between trade and war.

Suggested Citation

  • David Bearce and Eric Fisher, 2001. "Economic Geography, Trade, and War," Computing in Economics and Finance 2001 40, Society for Computational Economics.
  • Handle: RePEc:sce:scecf1:40
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    Cited by:

    1. 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.
    2. 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.
    3. Thierry Vignolo & Agnès d'Artigues, 2003. "Why Global Integration May Lead to Terrorism: An Evolutionary Theory of Mimetic Rivalry," Economics Bulletin, AccessEcon, vol. 6(11), pages 1-8.
    4. 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.
    5. 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.
    6. 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.
    7. Hailay Gebretinsae Beyene, 2015. "Does International Trade Reduce Political Disputes?," Foreign Trade Review, , vol. 50(2), pages 99-117, May.
    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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    More about this item

    Keywords

    Conflict; International Trade; Economic Geography;
    All these keywords.

    JEL classification:

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

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