Do not take peace for granted: Adam Smith’s warning on the relation between commerce and war

Paganelli, Maria Pia; Schumacher, Reinhard

doi:10.1093/cje/bey040

Cited by 47 publications

(15 citation statements)

References 40 publications

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“…This supports the argument of the school of thought that says nations/communities that trade with each other find conflicts and hostilities between each other unattractive and costly, thereby reducing the probabilities of engaging each other in violent conflict. This finding is also consistent with the empirical findings of Martin et al (2012), Seitz et al (2015), Polachek (1980), Chang et al (2004), Krpec and Hodulak (2019), Paganelli and Schumacher (2019), and Garfinkel and Syropoulos (2015). They found that countries with greater trade engage in the least amount of hostilities.…”

Section: Trade and Internal Conflict In Nigeriasupporting

confidence: 91%

“…Other empirical works that have demonstrated a close association between INT-TRAD and INT-CONF include Gasiorowski and Polachek (1982), Fearon (1995), Seitz et al (2015), Paganelli and Schumacher (2019), Chang et al (2004), Garfinkel and Syropoulos (2015), and Martin et al (2012). A few other works examined factors that could influence the relationship between INT-TRAD and INT-CONF.…”

Section: Evidence From the Literaturementioning

confidence: 99%

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Contingencies in the relationship between trade and internal conflict in Nigeria: the role of the quality of the political institution

Okunlola¹

2022

IJSE

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PurposeThis paper empirically tests the relationship between conflict and trade in Nigeria from 1986 to 2017.Design/methodology/approachThis study made use of secondary data. Time-series data were collected from CBN Statistical Bulletin, WDI of the World Bank, MEPV of the Centre for Systemic Peace database, Stockholm International Peace Research Institute, political risk ratings of the ICRG, Freedom in the World Country Ratings of Freedom House, and ACLED database. This study used descriptive and econometrics techniques to analyze the data. It adopted the IV-GMM techniques.FindingsThe study found that domestic trade has a negative and significant effect on internal conflict in Nigeria. International trade, on the other hand, does not affect internal conflict. In addition, the interaction of trade and institutions shows that more civil liberties (CL) and lower corruption (COR) complement the effect of domestic and international trade in reducing hostilities in Nigeria over the study period.Research limitations/implicationsThe main limitation of this study is the inaccessibility of data. This study could not access the data on the volume of domestic trade in Nigeria. The study employed value-added tax on all domestic transactions in Nigeria as a proxy for domestic trade in the country. The study recommends that further studies should access the data on the volume of domestic trade as this could help further understand the relationship between domestic trade and internal conflict in Nigeria.Practical implicationsSince the improved domestic trade reduces internal conflict in Nigeria, the government should formulate policies that facilitate trade. Improving anti-graft efforts and CL will ease the process of formulating trade policies and increase the impact of domestic trade on internal conflict. Furthermore, these will reduce trade barriers and transaction costs. This can be achieved if the government strengthens its anti-COR agencies by making them more autonomous. CL can also be increased by enhancing voice and accountability in the country.Originality/valueThis study advances the literature by examining the role political–institutional quality plays in the relationship between trade and conflict.

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Section: Trade and Internal Conflict In Nigeriasupporting

confidence: 91%

Section: Evidence From the Literaturementioning

confidence: 99%

Contingencies in the relationship between trade and internal conflict in Nigeria: the role of the quality of the political institution

Okunlola¹

2022

IJSE

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“…), given the fact that nations were jealous (WN IV.iii.c.9) and would seek to opportunistically take advantage of one another through military force, Smith saw the importance of protecting the sovereignty and security of the nation state, even sometimes at the expense of free trade. Free trade would not necessarily function, in Smith's mind, as a guarantor of peace (Paganelli and Schumacher 2019). It is along such lines that he seems to support the English Navigation Acts, for instance, which were "not 27 Viner (1927, 213) helpfully catalogues four main areas of reform advocated in WN: free choice in occupation, free trade in land, free internal trade, and free trade in commerce "through the abolition of the duties, bounties, and prohibitions of the mercantilistic regime."…”

Section: The Limits Of Focalismmentioning

confidence: 99%

The Edifying Discourses of Adam Smith: Focalism, Commerce, and Serving the Common Good

Matson¹

2021

Preprint

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Smith’s discourses aim to encourage mores, practices, and public policies in service to the common good, or that which a universally benevolent spectator would approve of. The Wealth of Nations illustrates how in pursuing our own happiness within the bounds of prudence and commutative justice we may be said, literally or metaphorically, to cooperate with God in furthering the happiness of humankind. The Theory of Moral Sentiments elaborates an ethic, here called “focalism,” that instructs us to proportion our beneficent efforts to our knowledge and ability. The relationship between political economy and focalism is bidirectionally reinforcing. In one direction, the ethic of focalism contributes to the moral authorization of self-love, thereby invigorating and dignifying honest commercial activities. In the other direction, the insights of political economy reinforce the ethic of focalism by elaborating how through prudent commerce and focal beneficence we cooperate, even if only metaphorically, in a grand social enterprise.

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“…He also warned that wealth and trade were good in times of peace but dangerous in times of war (Smith, 1776, p. 494). It is thus fair to say that Smith did not go as far as Montesquieu, Kant, or Mill (see also Paganelli & Schumacher, 2019).…”

Section: Adam Smith Trade and National Defencementioning

confidence: 99%

In defence of liberal peace: A response to Edwin van de Haar

Murphy

2020

Economic Affairs

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Do not take peace for granted: Adam Smith’s warning on the relation between commerce and war

Cited by 47 publications

References 40 publications

Contingencies in the relationship between trade and internal conflict in Nigeria: the role of the quality of the political institution

Contingencies in the relationship between trade and internal conflict in Nigeria: the role of the quality of the political institution

The Edifying Discourses of Adam Smith: Focalism, Commerce, and Serving the Common Good

In defence of liberal peace: A response to Edwin van de Haar

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