Showing 1 - 10 of 346
We analyze how trade openness matters for interstate conflict over productive resources. Our analysis features a terms-of-trade channel that makes security policies trade-regime dependent. Specifically, trade between two adversaries reduces each one's incentive to arm given the opponent's...
Persistent link: https://www.econbiz.de/10011966909
We consider a dynamic setting where two countries with competing claims to a resource/asset first arm and then choose whether to resolve their dispute through war or peacefully through settlement. War precludes international trade and can be destructive, but also locks gains and eliminates...
Persistent link: https://www.econbiz.de/10015371932
Cyber technology represents digital military capability with the purpose of causing damage to the military strength and the social infrastructure of a potential enemy. War using conventional weapons may be preceded by or combined with a war using cyber technology. This paper introduces such...
Persistent link: https://www.econbiz.de/10011611284
Defense spending accounts for a large share of the budget in many countries, but the value of the resulting public good - national defense - has so far escaped assessment. Much of the literature has instead considered indirect benefits of defense spending in terms of greater economic growth or...
Persistent link: https://www.econbiz.de/10014450765
What determines the effectiveness of military buildups? We introduce the concept of the military multiplier: the percentage increase in military equipment an additional dollar buys. It varies with the costs of allocating resources to military production, depending, among other things, on the...
Persistent link: https://www.econbiz.de/10015402011
The Russian invasion of Ukraine in 2022 led to unprecedented sanctions aimed at denying Russia access to critical technologies essential for sustaining its war efforts. This paper examines whether trade sanctions targeting military goods were undermined by evasion, specifically through...
Persistent link: https://www.econbiz.de/10015333225
We provide a selective overview of the literature on the linkages between interstate conflict and international trade, paying special attention to how trade openness (i) affects arming incentives, (ii) the channels through which its effects travel, and (iii) its consequences for the emergence of...
Persistent link: https://www.econbiz.de/10015371928
We examine two factors that help explain the prevalence of conflict in low-income countries: that adversaries cannot enforce long-term contracts in arms, and that open conflict alters the future strategic positions of the adversaries differently than does peace. Using an infinite horizon model,...
Persistent link: https://www.econbiz.de/10003300923
The diversion of development aid to the recipient's military may be one explanation why aid is often found to be ineffective in promoting economic growth and development. Previous studies have not derived the causal effects of development aid on military expenditure. Using a new instrumental...
Persistent link: https://www.econbiz.de/10011539046
We study the long-term economic legacy of highly-skilled minorities a century after their wholesale expulsion. Using mass expulsions of Armenian and Greek communities of the Ottoman Empire in the early 20th century as a unique natural experiment of history, we show that districts with greater...
Persistent link: https://www.econbiz.de/10011581278