Wednesday, August 20, 2014

Network Analysis: Trade Alliances are More Stable

Network analysis supports what many political scientists have long suspected: international trade alliances are more effective than military ones at keeping the peace. Per Stanford economist Matthew O. Jackson:
"Once you bring in trade, you see network structures densify," he says. Nations form a web of trading alliances, which creates financial incentive not only to keep peace with trading partners but also to protect them from being attacked so as not to disrupt trade. "In the context of the alliances we have analyzed, trade motives are essential to avoiding wars and sustaining stable networks."
Protectionism has its appeal (save domestic jobs, keep substandard products off the market, reduce dependence on foreign suppliers, etc.), but not only does free trade produce economic benefits that outweigh the putative costs, it also is a strong preventative to war.

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