Data and Code for International Friends and Enemies

Principal Investigator(s): View help for Principal Investigator(s) Benny Kleinman, University of Chicago; Ernest Liu, Princeton University; Stephen J. Redding, Princeton University

Version: View help for Version V1

Name	File Type	Size	Last Modified
replication			08/20/2024 02:18:PM

Project Citation:

Kleinman, Benny, Liu, Ernest, and Redding, Stephen J. Data and Code for International Friends and Enemies. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-09-03. https://doi.org/10.3886/E194041V1

Project Description

Summary:

We examine whether as countries become more economically dependent on a trade partner, they realign politically towards that trade partner. We use network measures of economic exposure to foreign productivity growth derived from the class of trade models with a constant trade elasticity. We establish causality using two different sources of quasi-experimental variation: China's emergence into the global economy and the reduction in the cost of air travel over time. In both cases, we find that increased economic friendship causes increased political friendship, and that our theory-based network measures dominate simpler measures of trading relationships between countries.

Scope of Project

Subject Terms: international relations; international trade; productivity growth; real income

JEL Classification:
      F14 Empirical Studies of Trade
      F15 Economic Integration
      F50 International Relations, National Security, and International Political Economy: General

Geographic Coverage: World

Time Period(s): 1970 – 2012

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Published Versions

V1 [2024-09-03]

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