Conflict and trade: the relationship between geographic distance and international interactions |
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| Affiliation: | 1. Department of Economics, Chinese Culture University, Taiwan, ROC;2. Department of Economics, Binghamton University, 13902-6000, USA;3. Centers for Medicare and Medicaid, Baltimore, MD 21244, USA;1. St. Luke’s Weight Management Services, St. Luke’s University Health Network, Bethlehem, Pennsylvania;2. Department of Surgery, Division of Bariatric and Minimally Invasive Surgery, the Medical School of Temple University/St Luke’s University Health Network, Bethlehem, Pennsylvania;3. Research Institute and Medical School of Temple University/St. Luke’s University Health Network, Bethlehem, Pennsylvania;1. Physics Department, Faculty of Science, University of Zagreb, Bijenička c. 32, 10000 Zagreb, Croatia;2. Rudjer Bošković Institute, P.O.B. 180, 10002 Zagreb, Croatia;1. Assisted Reproductive Technology Center, Foshan Maternity and Children''s Healthcare Hospital Affiliated to Southern Medical University, Foshan, 528000, China;2. School of Clinical Medicine, Guangdong Pharmaceutical University, Guangzhou, 510006, China;1. National Research Nuclear University “MEPhI” (Moscow Engineering Physics Institute), Moscow, 115409 RF;2. Institute for Contemporary Education “JurInfoR-MGU”, Moscow, 119435 RF;1. Nagaoka University of Technology, Nagaoka, Niigata, Japan;2. T-Method, Sapporo, Hokkaido, Japan |
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| Abstract: | This paper extends the conflict–trade model to incorporate geographic distance. It expands prior research on contiguity in two ways. First, unlike other studies, it examines how geographic distance between countries affects cooperation as well as conflict. Second, it incorporates distance’s indirect effect on bilateral trade, which in turn affects conflict. The results show that distance reduces both cooperation and conflict between countries. However, cooperation is decreased more than conflict so that net conflict (conflict minus cooperation) rises as geographic distance between two countries increases. But in addition, distance simultaneously increases transportation and other trading costs, thereby leading to increased conflict and decreased cooperation working through diminished trade. As such, contiguity enhances conflict when contiguous states exhibit little trade. Distance’s direct impact on net conflict is miniscule compared to its impact through trade. |
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