The Impact of Conflict Types and Location on Trade

This article investigates the impact of interstate and intrastate conflict on trade. Analyses rely on a pooled time-series cross-sectional dataset with observations for 134 countries from 1979 to 2000. Results show that intrastate conflict has a larger negative impact on trade than interstate conflict; conflict in the exporting country has a more negative impact on trade than conflict in the importing country; and, finally, conflict's destructive effects go beyond the borders of the countries that directly experience it, as trade flows are also negatively influenced by conflict in neighboring countries.