Small and poor developing countries face well-known structural constraints and power asymmetries in their international economic relations Their limited economic weight often produces pessimism about the prospects for such countries to international trade negotiations. For many developing...

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,...