Abstract
In this paper I explore the relationship between military alliances and international trade, specifically, how do military alliances affect the total trade volume between trading nations who are also allies. I hypothesize that military alliances increase the volume of trade between allied nations as military alliances reduce the frictions and barriers on trade, increasing the volume of trade between allied nations. I explore this relationship in the context of the gravity model of international trade and I test my hypothesis with a series of regression estimations based on a large (~540k observations) dynamic time-series dataset. Through estimating the total volume of trade between pairs of countries based on their military alliance status and GDP per capita of each country, I find that military alliances do indeed increase the total volume of bilateral trade between allied nations.
Advisor
Moledina, Amyaz
Department
Business Economics
Recommended Citation
Culton, Cameron Warren, "How Do Military Alliances Affect the Bilateral Trade Volume Between Allied Nations?" (2025). Senior Independent Study Theses. Paper 11480.
https://openworks.wooster.edu/independentstudy/11480
Disciplines
International Business
Keywords
military alliances, international trade, the gravity model of international trade
Publication Date
2025
Degree Granted
Bachelor of Arts
Document Type
Senior Independent Study Thesis
© Copyright 2025 Cameron Warren Culton