How Outsourcing Affects Bilateral Political Relations

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1334

Classification and Topics

• Classification: Wirtschaft ; Personnel Economics: Labor Contracting Devices ; Geographic Labor Mobility; Immigrant Workers ; Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy
• Subject: outsourcing ; international trade ; peace ; conflict ; cooperation ; Internationale Wirtschaftsbeziehungen ; Internationale Beziehungen ; Outsourcing ; Frieden ; Schätzung ; Theorie ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Polachek, Solomon W.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/20603
• Last update: 10.03.2025, 11:43 AM CET