{"id":263657,"date":"2010-02-02T05:00:29","date_gmt":"2010-02-02T10:00:29","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/02\/02\/globalization-make-love-not-war\/"},"modified":"2010-02-02T05:00:29","modified_gmt":"2010-02-02T10:00:29","slug":"globalization-make-love-not-war","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/263657","title":{"rendered":"Globalization: Make Love Not War"},"content":{"rendered":"

If you listen to many exporters and consultants, you\u0092d think further globalization was inevitable. The Internet tightly wraps the world together, after all, and nations have become more and more interdependent. Even the awkward embrace between the U.S. and China — poor-nation creditor and rich-nation borrower — underscores the deepening economic ties.<\/p>\n

But a January paper<\/a> by economists Daron Acemoglu<\/strong> of Massachusetts Institute of Technology<\/strong> and Pierre Yared<\/strong> of Columbia University<\/strong>, published by the National Bureau of Economic Research<\/strong>, is a reminder that peace is the soil that nourishes trade. The two economists compared the growth of trade between 1988 and 2007 and the growth of militarism over roughly the same time frame and found that countries that experience an above-average increase in military spending are likely to experience a below-average increase in trade.<\/p>\n

\u0093Militarism is negatively associated with trade,\u0094 the two authors argue.<\/p>\n

The economists use an increase in military spending or an increase in the size of the military as proxies for \u0093militarism.\u0094 Even when they remove from the sample countries actively at war, the findings are the same: more militarism equals less trade growth.<\/p>\n

The authors acknowledge they can\u0092t prove that militarism causes the trade effect; rather they are making a correlation — and a warning. \u0093Globalization is not irreversible,\u0094 they say.<\/p>\n

That was certainly the case during the last great epoch of globalization between the end of the Napoleonic wars in 1815 to outbreak of World War I a century later. Trade and investment were among the casualties of the battles in Europe and the Great Depression that followed in the 1930s. Global integration didn\u0092t resume in earnest until the long peace after World War II.<\/p>\n

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If you listen to many exporters and consultants, you\u0092d think further globalization was inevitable. The Internet tightly wraps the world together, after all, and nations have become more and more interdependent. Even the awkward embrace between the U.S. and China — poor-nation creditor and rich-nation borrower — underscores the deepening economic ties. But a January […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-263657","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/263657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=263657"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/263657\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=263657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=263657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=263657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}