Trade does promote peace: New simultaneous estimates of the reciprocal effects of trade and conflict:

@inproceedings{Hegre2010TradeDP,
  title={Trade does promote peace: New simultaneous estimates of the reciprocal effects of trade and conflict:},
  author={H{\aa}vard Hegre and John R. Oneal and Bruce M. Russett},
  year={2010}
}
Two studies question whether economic interdependence promotes peace, arguing that previous research has not adequately considered the endogeneity of trade. Using simultaneous equations to capture the reciprocal effects, they report that trade does not reduce conflict, though conflict reduces trade. These results are puzzling on logical grounds. Trade should make conflict less likely, ceteris paribus, if interstate violence adversely affects commerce; otherwise, national leaders are acting… CONTINUE READING

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