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We augment the canonical neoclassical model of trade to allow for interstate disputes over land, oil, water, or other resources. The costs of such disputes in terms of arming depend on the trade regime in place. Under either autarky or free trade, the larger country (in terms of factor...
Persistent link: https://www.econbiz.de/10004979423
We examine how globalization affects trade patterns and welfare when conflict prevails domestically. We do so in a …
Persistent link: https://www.econbiz.de/10005196293