Resource title

How Outsourcing Affects Bilateral Political Relations

Resource image

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Resource description

One issue the literature neglects is how outsourcing stimulates trade (imports, exports and foreign direct investment), thereby affecting political relations. However, at least as far back as 1750, economic philosophers such as Baron de Montesquieu in his L?Esprit des Lois, argued, ?peace is the natural effect of trade.? This paper first reviews this literature and then presents econometric evidence. The evidence integrates political international relations events data with economics data on bilateral trade. The resulting econometric models show that trade between nations fosters more peaceful dyadic relations.

Resource author

Solomon W. Polachek

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20603

Resource license

Adapt according to the presented license agreement and reference the original author.