Economic interdependence and third-party international interactions: A 30-country third-party bloc case study

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Title:	Economic interdependence and third-party international interactions: A 30-country third-party bloc case study
Authors:	Chang, Yuan-Ching
Contributors:	經濟系
Keywords:	LIBERAL PEACE;POLITICAL CONFLICT/COOPERATION INTERSTATE CONFLICT TRADE MEDIATION MODEL DEMOCRACY DISPUTE WAR DIRECTIONS
Date:	2008
Issue Date:	2009-11-04 16:07:28 (UTC+8)
Abstract:	The trade-conflict model claims that one state, designated 'actor', is deterred from initiating conflict against a trading partner, designated target, for fear of losing the welfare gains associated with trade. This paper extends the trade-conflict model to garner implications concerning trade and conflict interactions where third-party blocs are involved. The theoretical propositions supported by proofs are: (1) if the actor increases trade with a third-party who is a friend of the target, then the actor will decrease conflict toward the target; (2) if the actor increases trade with a third-party who is a rival of the target, then the actor will increase conflict toward the target. A 30-country sample from the Conflict and Peace Data Bank (COPDAB) is used and divided into three blocs, namely a Western bloc, a Middle Eastern bloc, and an Eastern bloc. The empirical analysis supports the hypotheses. A similar relationship is also discussed and tested for situations in which conflict increases or decreases between the actor and third-party bloc. In addition, the evidence shows that Western bloc countries play a central role in world political and economic relationships.
Relation:	JAPANESE JOURNAL OF POLITICAL SCIENCE Volume: 9 Pages: 63-87 Part: Part 1
Appears in Collections:	[Department of Economics & Graduate Institute of Economics ] journal articles

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