{"id":494002,"date":"2010-03-31T10:11:43","date_gmt":"2010-03-31T14:11:43","guid":{"rendered":"tag:www.economist.com,21005727"},"modified":"2010-03-31T10:11:43","modified_gmt":"2010-03-31T14:11:43","slug":"make-war-not-trade","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/494002","title":{"rendered":"Make war, not trade"},"content":{"rendered":"

BACK in February, I linked to this<\/a> interesting economics result:<\/p>\n

\n

[A] January paper<\/a> by economists Daron Acemoglu of Massachusetts Institute of Technology and Pierre Yared of Columbia University, published by the National Bureau of Economic Research, 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

\u201cMilitarism is negatively associated with trade,\u201d the two authors argue.<\/p>\n<\/blockquote>\n

No kidding<\/a>:<\/p>\n

\n

The econometric analysis presented in this paper…provides empirical support to back up the many complaints made that there has been a \u201cthickening of the border\u201d after 9\/11. It estimates that Canadian exports of goods, excluding energy and forestry products, to the United States have been 12.5 per cent lower than would have been expected based on estimated relationships. It should be noted that this is substantial negative impact on exports even in comparison with the likely positive impact of the FTA\/NAFTA, which, even though it reduced non-tariff barriers, only eliminated tariffs averaging around one per cent. The analysis also confirmed that there was an 8-per-cent negative impact on the exports of services to the United States and an almost 13 per cent on the imports of travel services. It is ironic to consider such large  estimates of the negative impact on Canadian exports of the post-9\/11 border tightening at the same time as opposition to NAFTA is being expressed in the United States. Indeed, it could be argued, based on the analysis presented in this paper, that the any positive impact of the FTA\/NAFTA on imports from Canada have already been substantially eroded.<\/p>\n<\/blockquote>\n

That’s quite the costly policy.<\/p>\n","protected":false},"excerpt":{"rendered":"

BACK in February, I linked to this interesting economics result: [A] January paper by economists Daron Acemoglu of Massachusetts Institute of Technology and Pierre Yared of Columbia University, published by the National Bureau of Economic Research, is a reminder that peace is the soil that nourishes trade. The two economists compared the growth of trade […]<\/p>\n","protected":false},"author":4534,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-494002","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/494002","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\/4534"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=494002"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/494002\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=494002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=494002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=494002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}