Military Spending, International Commerce and Great Power Rivalry
Wherever international commerce flows in world politics, military power often flows with it - sometimes as a protector of commerce, sometimes as its promoters and sometimes as a tool of aggression against it. How are military power and international trade related? Do military power and commerce expand together or does military power decline as commerce (and perhaps interdependence) increases? Does this relationship vary across countries and, if so how? Power, Conflict and Trade is a study of the relationship between military power and international commerce among the Great Powers prior to World War I.
David Card and Alan B. Krueger have already made national news with their pathbreaking research on the minimum wage. Here they present a powerful new challenge to the conventional view that higher minimum wages reduce jobs for low-wage workers. In a work that has important implications for public policy as well as for the direction of economic…
After building an argument for a direct relationship between military power and commerce - one grounded in a mercantilist view of state power- and exploring their numerous connections, the book estimates models of the relationship among the Great Powers and explores a great deal of their commercial and military data, all of which is situated in the context of their mutual rivalries. Another question investigated is whether the peacetime conflicts and rivalries of the Great Powers affected their trade relations adversely. There is strong support for the argument that military power and commerce move together in world politics, though there is evidence for an inverse relationship as well.
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