When Do Conflicting Political Relations Affect International Trade?

2007/07/26 by Scott L. Kastner · 137 citations
Economics, Econometrics and Finance · Social Sciences · #Affect (linguistics) #China #Development economics #Economic integration #Economic interdependence #Economics #Geography #Global trade and economics #International Development and Aid #International Relations and Foreign Policy #International relations #International trade #Law #Mainland #Mainland China #Political economy #Political science #Politics #Sociology

paper · doi:10.1177/0022002707302804

published in Journal of Conflict Resolution 51(4), 664-688 (SAGE Publishing)

openalex publication_date 2007/07/26 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/25

Abstract

Limited commercial integration between India and Pakistan or within much of the Middle East suggests that conflicting political interests between countries can have a detrimental effect on their economic relations. But rapidly growing economic ties between Mainland China and Taiwan show that commerce can also flourish even in the presence of very hostile relations. I explore this variation and hypothesize that the effects of international political conflict on trade are less severe in cases where internationalist economic interests have relatively strong political clout domestically. Simple quantitative tests on a sample of seventy-six countries over the years 1961 to 1992 are supportive; further evidence is provided via a brief case study of Mainland China-Taiwan relations.

Citations

• Trade as a strategic weapon: American and alliance export control policy in the early postwar period
• Domestic Political Audiences and the Escalation of International Disputes
• Investing in the Peace: Economic Interdependence and International Conflict

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