Martin, Philippe; Mayer, Thierry; Thoenig, Mathias - C.E.P.R. Discussion Papers - 2005
This paper analyses theoretically and empirically the relationship between trade and war. We show that the intuition … that trade promotes peace is only partially true even in a model where trade is beneficial to all, war reduces trade and … probability of escalation is indeed lower for countries that trade more bilaterally because of the opportunity cost associated …