Arming in the global economy: The importance of trade with enemies and friends

• Published in: Journal of international economics Vol. 123; p. 103295
• Main Authors: Garfinkel, Michelle R., Syropoulos, Constantinos, Yotov, Yoto V.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.03.2020
• Subjects: Arming; Comparative advantage; Conflict; Interstate disputes; Resource insecurity; Trade openness; D30; D74; Interstate disputes; F52; Arming; F51; F10; Conflict; Resource insecurity; Comparative advantage; Trade openness

We analyze how trade openness matters for interstate conflict over productive resources. Our analysis features a terms-of-trade channel that makes security policies trade-regime dependent. Specifically, trade between two adversaries reduces each one's incentive to arm given the opponent's...