Episode 18. Make Trade, Not War – How Commerce Curbs Conflict
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Episode 18. Make Trade, Not War – How Commerce Curbs Conflict
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Does trade between nations genuinely promote peace, or is this belief overly simplistic? In this episode, we dive into the influential study by Philippe Martin, Thierry Mayer, and Mathias Thoenig, exploring whether economic interdependence really helps prevent military conflicts or inadvertently escalates tensions.
Join us as we discuss surprising findings: countries with bilateral trade are less likely to engage in war, but multilateral trade openness might increase global tensions by reducing the opportunity cost of conflict with a single partner. Learn how trade shapes alliances, affects geopolitical stability, and what policymakers can take from these insights to avoid unintended consequences.
📖 Citation: Martin, Philippe, Mayer, Thierry, & Thoenig, Mathias. 2008. "Make Trade Not War?" The Review of Economic Studies 75(3): 865–900.
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Let's unpack the complex dynamics between trade and peace together, one insightful episode at a time!