TITLE:
A Financial Analysis Approach on the Promotion of Peace through Economic Interdependence
AUTHORS:
Thomas Poufinas, Victoria Pistikou
KEYWORDS:
Economic Interdependence, Relative Power, National Security Threat, Realism, Liberalism
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.15,
December
14,
2018
ABSTRACT: The question of whether economic interdependence
promotes peace is more than ever relevant once and again due to a series of
conflicts around the globe. Two schools advocate the two opposite beliefs;
these are Realism and Liberalism. The former supports that economic
interdependence does not necessarily promote peace, whereas the latter trusts
that it does. In our paper, we use a financial analysis—econometric
approach to realize that there is evidence that supports that economic
interdependence between two states in conflict does not promote peace since it
has no significant impact on the configuration of the conflict. Consequently,
it does not provide a significant enhancement in the levels of national
security.