The Geography of Conflicts and Regional Trade Agreements - Sciences Po Access content directly
Journal Articles American Economic Journal: Macroeconomics Year : 2012

The Geography of Conflicts and Regional Trade Agreements

Abstract

In addition to standard trade gains, regional trade agreements (RTAs) can promote peaceful relations by increasing the opportunity cost of conflicts. Country pairs with large trade gains from RTAs and a high probability of conflict should be more likely to sign an RTA. Using data from 1950 to 2000, we show that this complementarity between economic and politics determines the geography of RTAs. We disentangle trade gains from political factors by a theory-driven empirical estimation and find that country pairs with higher frequency of past wars are more likely to sign RTAs, the more so the larger the trade gains.
Fichier principal
Vignette du fichier
mac.4.4.1.pdf (3.94 Mo) Télécharger le fichier
Origin : Publisher files allowed on an open archive

Dates and versions

hal-03461131 , version 1 (01-12-2021)

Identifiers

Cite

Thierry Mayer, Mathias Thoenig, Philippe Martin. The Geography of Conflicts and Regional Trade Agreements. American Economic Journal: Macroeconomics, 2012, 4 (4), pp.1 - 35. ⟨10.1257/mac.4.4.1⟩. ⟨hal-03461131⟩
35 View
100 Download

Altmetric

Share

Gmail Facebook X LinkedIn More