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International trade and cyber conflict

Decomposing the effect of trade on state-sponsored cyber attacks

Bibliographic Data

ID3917640
AuthorsWilliam Akoto (0000-0002-1652-2394, Fordham University, corresponding author)
Year2021
Volume58
Issue5
Pages1083-1097
Publication date2021-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Peace Research (JOURNAL)
Journal identifiersISSN: 0022-3433 • E-ISSN: 1460-3578
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0022343320964549
OpenAlexW3123136192
LanguageEN
Citations received5
References cited30

A state's decision to engage in cyber operations has important implications for its trade. Successful cyber espionage could yield valuable trade secrets that could boost domestic production and spur economic growth. On the other hand, uncovered cyber operations could invite devastating sanctions that retard economic development. In spite of this, the nexus between trade and cyber attacks has received little attention in the literature. In this article, I explore how a state's trade relations affect its propensity to engage in cyber attacks. I develop a theoretical framework that links the composition of a state's trade to its deficit in proprietary information relative to other states. I decompose trade into its inter- and intra-industry components and show that while inter-industry trade is associated with higher incidence of state-sponsored cyber attacks, intra-industry trade has the opposite effect. I also show that these effects are non-monotonic, varying by the share of inter- or intra-industry trade in total trade. The results also show that states that have a heavy concentration of high-tech industries such as aerospace, computers, and pharmaceuticals have a higher propensity to engage in cyber espionage operations. These results are robust to a variety of controls and specifications

Balance of trade · Business · Computer security · Cyber-attack · Economics · Industrial espionage · International trade · Intra-industry trade · Nexus (standard) · Political science · Sanctions · State (computer science) · Trade barrier · Variety (cybernetics) · Yield (engineering) · Computer Science · Cybercrime and Law Enforcement Studies · Cybersecurity and Cyber Warfare Studies · Engineering · Information and Cyber Security · Law

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Unique citing works5
Citations per year1
Citation span2021 - 2026 (6)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 5

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