Polachek, Solomon W.; Seiglie, Carlos - Institute for the Study of Labor (IZA) - 2006
. Specialization based on comparative advantage leads to gains from trade. If political conflict leads to a diminution of trade, then … at least a portion of the costs of conflict can be measured by a nation's lost gains from trade. The greater two nations …' gain from trade the more costly is bilateral (dyadic) conflict. This notion forms the basis of Baron de Montesquieu …