Little is known about the firm-level dynamics behind trade responses to political tensions. This article reinvestigates variation in the travel pattern of the 14th Dalai Lama to study how political tensions affect trading decisions of Chinese importers. Using monthly trade data from China...

This paper investigates the effects of trade asymmetry on political conflicts and the possible heterogeneity. The study used instrumental variable regression method based on 142 countries' data from 1979 to 2012. The estimation results show that a 1% rise in trade asymmetry leads to a 2.67%...