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Guns and ButterThe Economic Causes and Consequences of Conflict$
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Gregory D. Hess

Print publication date: 2009

Print ISBN-13: 9780262012812

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262012812.001.0001

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Globalization and Insecurity: Reviewing Some Basic Issues

Globalization and Insecurity: Reviewing Some Basic Issues

Chapter:
(p.75) 3 Globalization and Insecurity: Reviewing Some Basic Issues
Source:
Guns and Butter
Author(s):

Michelle R. Garfinkel

Stergios Skaperdas

Constantinos Syropoulos

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262012812.003.0004

This chapter examines how a more open trade environment affects the likelihood of conflict within and between nations. It suggests that insecurity has costs that are economically important and explains that these include direct costs such as those of arming and destruction and indirect ones that are due to disruptions in the process of production, consumption, and investment that are brought about by insecurity and conflict. It also analyzes the effects of trade on countries with contested natural resources and contends that trade in a contested resource can make a country worse off because its efforts to protect its rights could produce welfare-reducing effect.

Keywords:   trade environment, likelihood of conflict, insecurity, indirect costs, direct costs, contested natural resources, welfare-reducing effect

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