Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20603
Authors: 
Polachek, Solomon W.
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1334
Abstract: 
One issue the literature neglects is how outsourcing stimulates trade (imports, exports and foreign direct investment), thereby affecting political relations. However, at least as far back as 1750, economic philosophers such as Baron de Montesquieu in his L?Esprit des Lois, argued, ?peace is the natural effect of trade.? This paper first reviews this literature and then presents econometric evidence. The evidence integrates political international relations events data with economics data on bilateral trade. The resulting econometric models show that trade between nations fosters more peaceful dyadic relations.
Subjects: 
outsourcing
international trade
peace
conflict
cooperation
JEL: 
M55
F1
J61
O24
F2
Document Type: 
Working Paper

Files in This Item:
File
Size
193.96 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.