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Globalization mitigates the risk of conflict caused by strategic territory

Author

Listed:
  • Quentin Gallea

    (Department of Economics, University of Zurich, 8001 Zurich, Switzerland; Enterprise for Society (E4S) Center, 1015 Lausanne, Switzerland)

  • Dominic Rohner

    (Enterprise for Society (E4S) Center, 1015 Lausanne, Switzerland; Department of Economics, Hautes Etudes Commerciales (HEC) Lausanne, University of Lausanne, 1015 Chavannes-près-Renens, Switzerland; Centre for Economic Policy Research, London EC1V 0DX, United Kingdom)

Abstract
Globalization is routinely blamed for various ills, including fueling conflict in strategic locations. To investigate whether these accusations are well founded, we have built a database to assess any given location’s strategic importance. Consistent with our game-theoretic model of strategic interaction, we find that overall fighting is more frequent in strategic locations close to maritime choke points (e.g., straits or capes), but that booming world trade openness considerably reduces the risks of conflict erupting in such strategic locations. The impact is quantitatively sizable, as moving one SD (1,100 km) closer to a choke point increases the conflict likelihood by 25% of the baseline risk in periods of low globalization, while reducing it during world trade booms. Our results have important policy implications for supranational coordination.

Suggested Citation

  • Quentin Gallea & Dominic Rohner, 2021. "Globalization mitigates the risk of conflict caused by strategic territory," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 118(39), pages 2105624118-, September.
  • Handle: RePEc:nas:journl:v:118:y:2021:p:e2105624118
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    File URL: http://www.pnas.org/content/118/39/e2105624118.full
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    Citations

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    Cited by:

    1. Patrick Premand & Dominic Rohner, 2024. "Cash and Conflict: Large-Scale Experimental Evidence from Niger," American Economic Review: Insights, American Economic Association, vol. 6(1), pages 137-153, March.
    2. Quentin Gallea & Massimo Morelli & Dominic Rohner, 2022. "Power in the Pipeline," Papers 2210.03572, arXiv.org.
    3. Dominic Rohner, 2022. "Conflict, Civil Wars and Human Development," Cahiers de Recherches Economiques du Département d'économie 22.08, Université de Lausanne, Faculté des HEC, Département d’économie.
    4. Massimo Morelli & Dominic Rohner, 2023. "Natural resources and conflict: The crucial role of power mismatch and geographic asymmetries," Working Papers 698, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.

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