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An Economic Theory of Import Dependence and War
Florence, Italy 20 June 2013 – 22 June 2013
Roberto Bonfatti, University of Nottingham; Kevin H. O' Rourke, University of Oxford
Abstract
The paper develops a theoretical model of trade and hegemonic war, in which dependence on trade may induce a follower nation to make war on the existing hegemon. It argues that this mechanism may have been at work at key moments in the early twentieth century.