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Does Trade Still Follow the Flag?

Published online by Cambridge University Press:  01 August 2014

Brian M. Pollins
Brian M. Pollins
Affiliation:
Ohio State University
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Abstract

A public choice approach is used to build a model of bilateral trade flows employing international conflict and cooperation, as well as prices and income, to predict the level of imports. The model is consistent with neoclassical trade theory in economics, while employing data and measurement insights from the field of international relations to construct an indicator of bilateral diplomatic relations. The model is empirically tested using pooled, cross-section time-series analysis for six nations representing different worlds of development. Considerable empirical support is found for the model in general. The effects of diplomacy on commerce are significant and conform to model predictions in every instance. Estimation results also indicate possible cross-national differences in the political management of trade relations.

Type
Articles
Information
American Political Science Review , Volume 83 , Issue 2 , June 1989 , pp. 465 - 480
Copyright
Copyright © American Political Science Association 1989

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