Trading for peace : India and Pakistan

In: 1874-2033 ; The Broker, 16-18. (2007)

Abstract

The democratic peace hypothesis is compared with the liberal peace hypothesis, using the case of India and Pakistan. Econometric analysis suggests that trade between the two countries increases the chance of peace. Economic progress, combined with greater openness to international trade in general are more significant drivers of peace between nations like India and Pakistan, than are the independent contributions of a common democratic polity. So economic interdependence rather than politics is more likely to contribute to peaceful relations between India and Pakistan in the future.