Balance of Power Revisited

A Multi-Country Model of Trade and Conflict

Bibliographic Data

ID3916630
AuthorsHan Dorussen (0000-0002-3458-0555, Norwegian University of Science and Technology, corresponding author)
Year1999
Volume36
Issue4
Pages443-462
Publication date1999-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Peace Research (JOURNAL)
Journal identifiersISSN: 0022-3433 • E-ISSN: 1460-3578
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0022343399036004004
OpenAlexW2007613724
LanguageEN
Citations received21
References cited25

A general multi-country model of trade and conflict is outlined and comparative static results for the number of countries are explored. Conflict is defined as a credible threat to use force to appropriate resources of another country. The model shows that, in general, trade reduces the incentives for conflict, but multi-country situations require important modifications. The pacifying effect of trade diminishes rapidly with a larger number of countries. The effect of trade on conflict is compared given different assumptions about the nature of conflict. Assuming that conflict does not lead to the elimination of the losing side, trade has the strongest deterrent effect if countries trade freely before conflict and are committed to not trading after conflict. Countries have, however, an interest in resuming trade. The connection between this commitment problem and security is then explored in the model from a balance-of-power perspective. The commitment not to trade with an adversary becomes more strained if an alliance is relatively weak or fragmented. In such circumstances, intra-alliance trade has to be more efficient

Adversary · Alliance · Balance (ability) · Computer security · Economics · Incentive · International economics · International trade · Microeconomics · Political science · Power (physics) · Trade barrier · Computer Science · International Development and Aid · International Relations and Foreign Policy · Political Conflict and Governance · Psychology

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