Abstract
This paper analyzes the relationship between economic interdependence and international
conflict in the post-Cold War period since 1990 through a pooled analysis of time-series
cross-sectional data on militarized interstate disputes (MIDs) and joint membership
in economic, financial and monetary international organizations. I find evidence that
an increase in the number of joint memberships does reduce the probability of a conflict
between two states. The statistical results show that the impact of an increased number
of joint memberships is not only significant, but also much larger than previously
argued. A greater number of joint memberships has larger impact on the probability
of interstate conflict than do trade interdependence, joint democracy or major power
involvement variables. The main contributions of this paper are twofold. First, it
focuses the analysis of economic and trade interdependence on joint memberships in
strictly economic, financial and monetary organizations. Second, it provides a much
needed contemporary argument in the debate on the relationship between membership
in such organizations and international conflict.
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