The Domestic Politics of Trade and Conflict

Abstract

Liberal international relations theory suggests that mutual gains from trade prevent conflict between states. Previous research has focused predominately on international outcomes, especially the occurrence of militarized conflict between pairs of states. How concerns about welfare gains from trade help produce the policy choices leading to these outcomes is less well understood. This paper examines the influence of economic interests arising from international trade on the policy-making process at the domestic level. If the benefits of trade increase the opportunity cost of conflict, then support for a harmonious foreign policy should be strongest among trade's domestic beneficiaries. Those whose income is diminished by trade have no reason to favor a friendly foreign policy and might even prefer a hostile alternative. We test whether the domestic distributional effects of trade affect support for hostile foreign policies toward China among representatives in the US Congress. An analysis of cosponsorship and roll-call voting suggests that the export orientation and import sensitivity of their districts influences members’ positions on measures that criticize Chinese policies or treat the country as a security threat