Economic, political, and social determinants of peace

Authors

  • Sterling Huang
  • David Throsby

DOI:

https://doi.org/10.15355/epsj.6.2.5

Keywords:

War, peace

Abstract

Although quite a lot is known about the economics of war and conflict, rather less is known about the economics of peace. In this article we address the question: What are the major factors likely to lead countries toward peacefulness? We categorize these factors in three groups: economic, political, and socio-demographic, and test a set of hypotheses as to their influence using data for 2007 and 2008 covering more than 100 countries. Our results show that all three groups of factors play some part in contributing toward peacefulness in a country. In particular, among the economic factors we find that the most important influence is exerted by the openness of the economy. Political factors also emerge as significant, indicating that a properly constituted well-functioning democratic system of governance free of political corruption is an important requirement for the achievement of a peaceful society.

References

Aslam, R. 2007. “Measuring the Peace Dividend: Evidence from Developing Economies.” Defence and Peace Economics. Vol 18 No. 1 pp. 39-52.

Atesoglou, H.S. 2002. “Defense Spending Promotes Aggregate Output in the United States: Evidence from Co-integration Analysis.” Defence and Peace Economics. Vol. 13, No. 1, pp. 55-60.

Aizenman, J. and R. Glick 2006. “Military Expenditure, Threats, and Growth.” Journal of International Trade and Economic Development. Vol. 15, No. 2, pp. 129-155.

Barbieri, K. 2002. The Liberal Illusion: Does Trade Promote Peace? Ann Arbor, MI: University of Michigan Press.

Brauer, J. 2007. “Review Article: Is War Necessary for Economic Growth?” Economics of Peace and Security Journal. Vol. 2, No. 1, pp. 71-76.

Collier, P. 2006. “Economic Causes of Civil Conflict and Their Implications for Policy.” Working Paper, Department of Economics, Oxford University.

Dorussen, H. 2006. “Heterogenous Trade Interests and Conflict: What You Trade Matters.” Journal of Conflict Resolution. Vol. 50, No. 1, pp. 87-107.

Dreze, J. 2006. “Military Expenditure and Economic Growth,” pp. 377-382 in D.A. Clark, ed. The Elgar Companion to Development Studies, Cheltenham: Edward Elgar.

Dunne, J.P. 2009. “Defence Spending and Development/Modernisation,” ch. 23 in A.T.W. Tan, ed. The Global Arms Trade: A Handbook, London: Routledge.

Fosu, A.K. 2004. “Mapping Growth into Economic Development: Has Elite Political Instability Mattered in Sub-Saharan Africa?” American Journal of Economics and Sociology. Vol. 63, No. 5, pp. 1173-1192.

Gartzke, E., Q. Li, and C. Boehmer 2001. “Investing in the Peace: Economic Interdependence and International Conflict.” International Organisation. Vol 55, No. 2, pp. 391-438.

Hartley, K. 2010. “Defense Economics,” pp. 79-95 in W.B. Rouse, ed. The Economics of Human Systems Integration: Valuation of Investment in People’s Training and Education, Safety and Health, and Work Productivity. Hoboken, NJ: Wiley.

Institute for Economics and Peace 2008. Global Peace Index: 2008 Methodology, Results and Findings. St. Leonards: IEP.

Kollias, C., N. Mylonidid, and S-M. Paleologou 2007. “A Panel Data Analysis of the Nexus Between Defence Spending and Growth in the European Union.” Defence and Peace Economics. Vol. 18, No. 1, pp.75-85.

Kollias, C. and S-M. Paleologou 2010. “Growth, Investment and Military Expenditure in the European Union.” Journal of Economic Studies. Vol. 37, No. 2, pp. 228-240.

Martin, P., T. Mayer, and M. Thoenig. 2008. “Make Trade Not War?” Review of Economic Studies. Vol. 75, No. 3, pp. 865-900.

Mylonidis, N. 2008. “Revisiting the Nexus between Military Spending and Growth in the European Union.” Defence and Peace Economics. Vol. 19, No. 4, pp. 265-272.

Oneal, J. and B. Russett 1999. “Assessing the Liberal Peace with Alternative Specifications: Trade Still Reduces Conflict.” Journal of Peace Research. Vol 36, No. 4, pp. 423-442.

Pieroni, L. 2009. “Military Expenditure and Economic Growth.” Defence and Peace Economics. Vol. 20, No. 4, pp. 327-339.

Polachek, S. 2007. “How Trade Affects International Interactions.” Economics of Peace and Security Journal. Vol. 2, No. 2, pp. 60-68.

Polachek,S., C. Seiglie, and J. Xiang 2005. “Globalization and International Conflict: Can FDI Increase Peace?” Working Paper #2005-004. Newark, NJ: Rutgers University.

Sandler, T and K. Hartley 1998. The Economics of Defence. Cambridge: Cambridge University Press.

Sandler, T and K. Hartley, eds. 2007. Handbook of Defense Economics. Vol. 2. Amsterdam: Elsevier/North-Holland.

Sen, A. 2011. “Quality of Life: India vs. China.” The New York Review. Vol. LVIII, No. 8, pp. 44-45.

Throsby, D. and G.A. Withers. 2001. “Individual Preferences and Demand for Military Expenditure.” Defence and Peace Economics. Vol. 12, No. 2, pp. 87-102.

Tosun, M.U., M.C. Gran, and A. Ulucan. 2008. “The Political Instability, Investment Profile and the Macroeconomic Performance of the Middle East and North Africa (MENA) Region.” Problems and Perspectives in Management. Vol. 6, No. 2, pp. 31-38.

Tzeng, S., C. Lai, and C. Huang 2008. “Does Military Expenditure Matter for Inflation and Economic Growth?” Defense and Peace Economics. Vol 19, No. 6, pp. 471-478.

Downloads

Published

2011-07-15

How to Cite

Huang, S., & Throsby, D. (2011). Economic, political, and social determinants of peace. The Economics of Peace and Security Journal, 6(2). https://doi.org/10.15355/epsj.6.2.5

Issue

Section

Articles

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.