We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is … inhabitated by two ethnic groups. Inter-ethnic trade requires imperfectly observed bilateral investments and one group has to form … beliefs on the average propensity to trade of the other group. Since confict disrupts trade, the onset of a conflict signals …

We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is … inhabitated by two ethnic groups. Inter-ethnic trade requires imperfectly observed bilateral investments and one group has to form … beliefs on the average propensity to trade of the other group. Since confict disrupts trade, the onset of a conflict signals …

We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is … inhabitated by two ethnic groups. Inter-ethnic trade requires imperfectly observed bilateral investments and one group has to form … beliefs on the average propensity to trade of the other group. Since conflict disrupts trade, the onset of a conflict signals …

We analyze the interaction of economic and political determinants of free trade agreements (FTA). In addition to … standard trade gains, FTAs can promote peaceful relations by offering a political forum and by increasing the opportunity cost … of conflicts that disrupt trade. If policy makers believe in such pacifying effects of FTAs, country pairs with large …

We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is … inhabitated by two ethnic groups. Inter-ethnic trade requires imperfectly observed bilateral investments and one group has to form … beliefs on the average propensity to trade of the other group. Since conflict disrupts trade, the onset of a conflict signals …