Conflict and Trade: The Case of the Basque Country
| Authors | |
|---|---|
| Year of publication | 2019 |
| Type | Article in Proceedings |
| Conference | Proceedings of the International Scientific Conference ECONOMIC AND SOCIAL POLICY: Economic and Social Challenges for European Economy |
| MU Faculty or unit | |
| Citation | |
| Web | http://www.narodacek.cz/wp-content/uploads/2019/11/Proceedings-of-the-International-Scientific-Conference_2019-127-138.pdf |
| Keywords | Basque country; Foreign Trade; Conflict; Gravity model |
| Description | The aim of this contribution is to determine whether the conflict of the Basque Country with the Spanish State in some way influences the region’s foreign exports. Empirical analysis, based on the gravity model approach for the period 2000-2017, indicates that both intrastate conflict in the Basque Country and the foreign trade of the region are related. The regression results show that Basque foreign exports are positively associated with past values of conflict, and more specifically that conflict is associated with higher export flows to the European Union. Hence, foreign trade appears to act as insurance against conflict escalation, as predicted by Martin et al. (2008). |
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