We construct a trade-theoretic model for three open economies two of which are in conflict with each other and the third is the source of foreign investments to the two warring countries. War efforts — which involve the use of soldiers — is determined endogenously. The purpose of...

Purpose: This paper aims to examine the role of outside peacekeepers in a bilateral conflict. Design/methodology/approach: The authors build upon a trade theoretic framework by incorporating disruptions due to war, which could affect directly the return to investment, both domestic and foreign,...

We construct a trade-theoretic model for three open economies two of which are in conflict with each other and the third is the source of foreign investments to the two warring countries. War efforts -- which involve the use of soldiers -- is determined endogenously. The purpose of war is the...