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The Impact of Conflict Types and Location on Trade

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This article investigates the impact of interstate and intrastate conflict on trade. Analyses rely on a pooled time-series cross-sectional dataset with observations for 134 countries from 1979 to 2000. Results show that intrastate conflict has a larger negative impact on trade than interstate conflict; conflict in the exporting country has a more negative impact on trade than conflict in the importing country; and, finally, conflict's destructive effects go beyond the borders of the countries that directly experience it, as trade flows are also negatively influenced by conflict in neighboring countries.
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Keywords: civil wars; conflict; interstate conflict; trade; war

Document Type: Research Article

Affiliations: 1: Department of Marketing and International Business, Culverhouse College of Commerce and Business Administration, University of Alabama, Tuscaloosa, Alabama, USA 2: Department of International Business and Strategy, D'Amore-McKim School of Business, Northeastern University, Boston, Massachusetts, USA 3: Sonoco International Business Department, Moore School of Business, University of South Carolina, Columbia, South Carolina, USA

Publication date: July 1, 2013

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