Interstate Conflict and International Trade

Michelle Garfinkel and Constantinos Syropoulos ()
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Constantinos Syropoulos: School of Economics, Drexel University

No 202510, Working Papers from Center for Global Policy Analysis, LeBow College of Business, Drexel University

Abstract: We provide a selective overview of the literature on the linkages between interstate conflict and international trade, paying special attention to how trade openness (i) affects arming incentives, (ii) the channels through which its effects travel, and (iii) its consequences for the emergence of war (or peace) as an equilibrium outcome. We also discuss how restrictive trade policies may interact with national security concerns and what they imply for welfare.

Keywords: Gains from trade; National security; Arming; War and peace (search for similar items in EconPapers)
JEL-codes: C78 D30 D70 D74 F10 F51 F60 (search for similar items in EconPapers)
Pages: 14
Date: 2025-10
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