Are shared democratic values the most important factors in promoting peace between countries, or common economic interests? New econometric research shows that, in the case of India and Pakistan, trade with other countries increases the chance of peace.

We examine whether greater inter-state trade, democracy and reduced military spending lower belligerence between India and Pakistan. We begin with theoretical models covering the opportunity costs of conflict in terms of trade losses and security spending, as well as the costs of making...

Conflict between Pakistan and India can be best understood in a multivariate framework where variables such as economic performance, multilateral trade with the rest of the world, bilateral trade, military expenditure, democracy scores and population are simultaneously taken into account. Our...

The authors examine whether greater inter-state trade, democracy and reduced military spending lower belligerence between India and Pakistan. They begin with theoretical models covering the opportunity costs of conflict in terms of trade losses and security spending, as well as the costs of...

The paper traces the causal links of Indo-Pakistan conflict with trade, military expenditure and democracy under multivariate time series framework from 1950-2005. We find that higher exports to outside world and increased bilateral trade have high propensity to reduce hostilities between both...

The authors examine whether greater inter-state trade, democracy and reduced military spending lower belligerence between India and Pakistan. They begin with theoretical models covering the opportunity costs of conflict in terms of trade losses and security spending, as well as the costs of...

The authors examine whether greater inter-state trade, democracy and reduced military spending lower belligerence between India and Pakistan. They begin with theoretical models covering the opportunity costs of conflict in terms of trade losses and security spending, as well as the costs of...