Common Interests or Common Polities? Reinterpreting the Democratic Peace

The central claim of a rapidly growing literature in international relations is that members of pairs of democratic states are much less likely to engage each other in war or in serious disputes short of war than are members of other pairs of states. Our analysis does not support this claim. Instead, we find that the dispute rate between democracies is lower than is that of other country pairs only after World War II. Before 1914 and between the World Wars, there is no difference between the war rates of members of democratic pairs of states and those of members of other pairs of states. We also find that there is a higher incidence of serious disputes short of war between democracies than between nondemocracies before 1914. We attribute this cross-temporal variation in dispute rates to changes in patterns of common and conflicting interests across time. We use alliances as an indicator of common interests to show that cross-temporal variation in dispute rates conforms to variations in interest patterns for two of the three time periods in our sample.

State Control and the Effects of Foreign Relations on Bilateral Trade

Do states use trade to reward and punish partners? WTO rules and the pressures of globalization restrict states’ capacity to manipulate trade policies, but we argue that governments can link political goals with economic outcomes using less direct avenues of influence over firm behavior. Where governments intervene in markets, politicization of trade is likely to occur. In this paper, we examine one important form of government control: state ownership of firms. Taking China and India as examples, we use bilateral trade data by firm ownership type, as well as measures of bilateral political relations based on diplomatic events and UN voting to estimate the effect of political relations on import and export flows. Our results support the hypothesis that imports controlled by state-owned enterprises (SOEs) exhibit stronger responsiveness to political relations than imports controlled by private enterprises. A more nuanced picture emerges for exports; while India’s exports through SOEs are more responsive to political tensions than its flows through private entities, the opposite is true for China. This research holds broader implications for how we should think about the relationship between political and economic relations going forward, especially as a number of countries with partially state-controlled economies gain strength in the global economy