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The capitalist peace revisited : a new liberal peace model and the impact of market fluctuations

University of British Columbia

Gartzke (2007) argues that countries which are more open to the global financial market are less likely to have militarized interstate conflicts, and he also argues that democratic peace is spurious once the market openness is taken into consideration. However, this argument has been weakened due to the missing values in his data and flaws in the modeling. Furthermore, the negative impact of financial globalization, such as the lack of surveillance and market fluctuation, need to be considered. This paper proposes a new liberal peace model with careful attention to the problems of missing data and model misspecifications, and the results of the new liberal model shows that while traditional democratic peace and commercial peace remain robust in the new era of global financial integration, the pacifying effect of commercial ties has been weakened by the volatile fluctuations in the international financial market.

Text

2012-03-27

Attribution-NonCommercial-NoDerivatives 4.0 International

http://hdl.handle.net/2429/41809

Political Science

University of British Columbia

UBCV

http://creativecommons.org/licenses/by-nc-nd/4.0/