A Simultaneous-Equations Model of Trade, Conflict, and Cooperation

17 Pages Posted: 5 Jun 2003

See all articles by Rafael Reuveny

Rafael Reuveny

Indiana University Purdue University Indianapolis (IUPUI) - School of Public and Environmental Affairs (SPEA); Indiana University Bloomington - School of Public & Environmental Affairs (SPEA)

Heejoon Kang

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy

Abstract

A simultaneous-equations model is developed for the reciprocal relationship among bilateral trade value, conflict, and cooperation by modeling the actions of exporters, importers, and governments. The model is estimated separately for each of the dyads among the US, the USSR, China, Japan, and (West) Germany for the yearly data from 1948 to 1992. The direction of the effects of conflict or cooperation on trade and that of trade on conflict or cooperation are generally mixed, as expected. Certain reciprocal relationship patterns emerge depending on whether countries belong to the East or West block.

Suggested Citation

Reuveny, Rafael and Kang, Heejoon, A Simultaneous-Equations Model of Trade, Conflict, and Cooperation. Review of International Economics, Vol. 11, pp. 279-295, May 2003. Available at SSRN: https://ssrn.com/abstract=411326

Rafael Reuveny (Contact Author)

Indiana University Purdue University Indianapolis (IUPUI) - School of Public and Environmental Affairs (SPEA) ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States

Heejoon Kang

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy ( email )

Bloomington, IN 47405
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
23
Abstract Views
930
PlumX Metrics