Thiemo Fetzer, Pedro Souza, Oliver Vanden Eynde, Austin L. Wright, 11 July 2021

Previous research in economics has focused on the causes of conflict, while the ending of military interventions has received less attention. This column examines the recent security transition from international troops to local forces in the ongoing civil conflict in Afghanistan using declassified data on conflict outcomes and perceptions of local security. It finds that a decline in violence during the initial phase of the security transfer was followed by an upsurge in violence once foreign troops physically withdrew, suggesting that the Taliban’s attacks have been highly strategic. 

Barry Eichengreen, Arnaud Mehl, Livia Chiţu, 14 March 2019

Both economics and geopolitics matter for trade agreements. In particular, defence pacts raise the probability of a trade agreement between a pair of countries by as much as 20 percentage points. This column estimates that were the US to alienate its geopolitical allies, the likelihood and benefits of successful bilateral agreements would diminish significantly. Expected trade creation from an agreement between the US and EU countries would decline by 0.6% of total US exports.

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