Trade and insecure resources

• Published in: Journal of international economics Vol. 95; no. 1; pp. 98 - 114
• Main Authors: Garfinkel, Michelle R., Skaperdas, Stergios, Syropoulos, Constantinos
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.01.2015; Elsevier Sequoia S.A
• Subjects: Civil war; Comparative advantage; Comparative analysis; Conflict; Economic theory; Equilibrium; Free trade; Game theory; International disputes; Interstate disputes; Prices; Prisoner's dilemma; Property rights; Security policies; Studies; Trade; Trade openness; Interstate disputes; D30; D74; F52; F51; F10; Conflict; Property rights; Security policies; Trade openness

We construct a model of conflict and trade to study the consequences of interstate disputes over contested resources (land, oil, water or other resources) for arming, welfare and trade flows. Different trade regimes imply different costs of such disputes in terms of arming. Depending on world prices...