The Effect of Economic Relation on International Peace

Author

Jie, Cai

Author_Institution

Sch. of Econ. & Manage., Huazhong Normal Univ., Wuhan, China

fYear

2010

fDate

22-24 Jan. 2010

Firstpage

475

Lastpage

478

Abstract

The globalization developed rapidly after the Cold War. The effect of economic relation on international peace becomes more and more significant. Especially, the effect of international trade and foreign direct investment (FDI) draws much attention. After the literature review, the paper uses the panel data of 29 countries in 1991-2000 periods to do empirical research. Through constituting VAR model to do variance decomposition, the paper explores that the trade and FDI has prominent effect in reducing international conflict, and trade and FDI can promote international peace complementarily. The cross-Strait political relation is analyzed as a case. The paper discovers that the development of trade and FDI between mainland and Taiwan is the Granger cause of their peace, so that it can promote the bilateral relation.

Keywords

economics; globalisation; international trade; investment; politics; risk management; VAR model; bilateral relation; cross-Strait political relation; economic relation; foreign direct investment; globalization; international conflict; international peace; international trade; variance decomposition; Bifurcation; Conference management; Electronic learning; Fault detection; Globalization; International trade; Investments; Power generation economics; Reactive power; Testing; Cross-Strait Relation; Economic Relation; International Peace;

fLanguage

English

Publisher

ieee

Conference_Titel

e-Education, e-Business, e-Management, and e-Learning, 2010. IC4E '10. International Conference on

Conference_Location

Sanya

Print_ISBN

978-1-4244-5680-2

Electronic_ISBN

978-1-4244-5681-9

Type

conf

DOI

10.1109/IC4E.2010.69

Filename

5432519