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Globalization and domestic conflict

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dc.creator Garfinkel, Michelle R.
dc.creator Skaperdas, Stergios
dc.creator Syropoulos, Constantinos
dc.date 2005
dc.date.accessioned 2013-10-16T07:02:13Z
dc.date.available 2013-10-16T07:02:13Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18974
dc.identifier ppn:50053649X
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18974
dc.description We examine how globalization affects trade patterns and welfare when conflict prevails domestically. We do so in a simple model of trade, in which a natural resource like oil is contested by competing groups using real resources (?guns?). Thus, conflict is viewed as ultimately stemming from imperfect property-rights enforcement. When comparing autarky with free trade in such a setting, the gains from trade have to be weighed against the possibly higher resource costs of conflict. We find that importers of the contested resource gain unambiguously. By contrast, countries exporting the contested resource will lose under free trade, unless the international price of the resource is sufficiently high. Regardless of what price obtains in international markets, countries tend to over-export the contested resource relative to what we would observe if there were no conflict; for some range of prices, the presence of conflict even inverts the country's comparative advantage. We find further that an increase in the international price of the contested resource over an even wider range reduces welfare, an instance of the ?natural resource curse.?
dc.language eng
dc.publisher
dc.relation CESifo working papers 1510
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject D78
dc.subject D74
dc.subject D72
dc.subject K42
dc.subject F10
dc.subject F02
dc.subject ddc:330
dc.subject globalization
dc.subject trade openness
dc.subject property rights
dc.subject enforcement
dc.subject insecurity
dc.subject conflict
dc.subject Außenhandelsliberalisierung
dc.subject Rohstoff
dc.subject Außenhandel
dc.subject Rohstoffressourcen
dc.subject Eigentumsrecht
dc.subject Politische Unruhen
dc.subject Bürgerkrieg
dc.subject Außenhandelseffekt
dc.subject Wohlfahrtseffekt
dc.subject Theorie
dc.title Globalization and domestic conflict
dc.type doc-type:workingPaper


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