TY  - RPRT
        AU  - Polachek, Solomon
        TI  - How Outsourcing Affects Bilateral Political Relations
        PY  - 2004/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1334
        UR  - https://www.iza.org/publications/dp1334
        AB  - 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.
        KW  - cooperation
KW  - outsourcing
KW  - conflict
KW  - international trade
KW  - peace
        ER  -