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AUSTERITY MEASUREMENT (2) answer(s).
 
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ID:   124543


Global oil prices and the impact of China / Beirne, J; Beulen, C; Liu, G; Mirzaei, A   Journal Article
Beirne, J Journal Article
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Publication 2013.
Summary/Abstract This paper assesses the externality impact of China's excessive growth as a China factor on the world economy via examining the effect of Chinese GDP growth on oil prices as a case for the issue. Our assessment starts, firstly, by estimating a country-level demand model to determine the GDP influences of an individual country on oil demand. Secondly, it estimates the impact of world aggregate demand on oil prices. This two-stage approach enables us to estimate the effect of the GDP growth of an individual nation on oil demand globally and the global price of oil. The estimated demand model is applied to quantify the effect of the Chinese GDP growth on the price of oil through simulations of a range of scenarios for each year over the period 2009 to 2030. We find that China's excessive growth adds a premium to the price of oil which increases over time. The results have policy implications in terms of the sustainability of the Chinese faster growth rate from the perspective of its negative externalities to the world.
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2
ID:   124521


International trade and the onset and escalation of interstate : more to fight about, or more reasons not to fight? / Goldsmith, Benjamin E   Journal Article
Goldsmith, Benjamin E Journal Article
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Publication 2013.
Summary/Abstract Although study of the relationship between international trade and militarized conflict has become more sophisticated, whether trade reduces the chance of conflict, exacerbates it, or has no effect, remains contested. Integrating expectations from schools of thought often portrayed as incompatible, I consider two aspects of trade - volume and interdependence - and model conflict as a two-stage process involving onset and escalation. This perspective leads to robust statistical findings that trade is Janus-faced, both facilitating and inhibiting conflict at different stages, supporting the conclusion that a focus on international conflict as a communication process promises better theory in international relations.
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