Omer Faruk Orsun

Political Science Faculty at New York University Abu Dhabi

War Made the State, and the State Made Trade? How Violent Independence Shapes Long-term Trade Performance


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Reşat Bayer, Omer F. Orsun

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APA   Click to copy
Bayer, R., & Orsun, O. F. War Made the State, and the State Made Trade? How Violent Independence Shapes Long-term Trade Performance.


Chicago/Turabian   Click to copy
Bayer, Reşat, and Omer F. Orsun. “War Made the State, and the State Made Trade? How Violent Independence Shapes Long-Term Trade Performance,” n.d.


MLA   Click to copy
Bayer, Reşat, and Omer F. Orsun. War Made the State, and the State Made Trade? How Violent Independence Shapes Long-Term Trade Performance.


BibTeX   Click to copy

@unpublished{bayer-a,
  title = {War Made the State, and the State Made Trade? How Violent Independence Shapes Long-term Trade Performance},
  author = {Bayer, Reşat and Orsun, Omer F.}
}

How does the path to independence shape new states' long-term trade performance? Challenging conventional wisdom that war disrupts trade, we show that states that achieve independence from their colonizers through war experience  better trade performance after an initial disruption. Analyzing bilateral trade flows from 1948-2006 using semi-parametric gravity models, we identify that violently independent states initially experience a deterioration in trade followed by a stark U-shaped recovery around year 25. Three mechanisms drive this recovery pattern: violent independence signals credible commitment to economic autonomy, triggers state-making processes consistent with Tilly's war-making state-making thesis, and forces industrialization through necessity. In contrast, peaceful independence initially maintains existing colonial institutions and trade ties, but this advantage becomes a liability over time. Our findings extend the bellicist theory of state formation beyond Europe to post-colonial settings, qualify the erosion of colonial trade hypothesis, and show how decolonization processes shape the trade trajectories.

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