Abstract
This paper investigates the effects of trade asymmetry on political conflicts and the possible heterogeneity. The study used instrumental variable regression method based on 142 countries’ data from 1979 to 2012. The estimation results show that a 1% rise in trade asymmetry leads to a 2.67% increase in political conflicts. Moreover, the geographic proximity and political regime differences between trade partners intensify the aggravating effects of trade asymmetry on political conflicts.
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