A Review of Recent Advances and Future Directions in the Quantitative Literature on Civil War

This paper reviews the booming literature on civil war. It presents the major theoretical perspectives and key empirical results on the determinants of civil war. The paper identifies controversies in the field and suggests ways to improve and organize our research. The conclusion outlines possible future directions for research on civil wars.     

The future challenges of NATO: An economic viewpoint

This article identifies and evaluates likely challenges facing NATO today and into the next millennium. These contingencies include ethnic‐based civil wars in Europe, transnational terrorism, rogue states, increased world income inequality, out‐of‐area conflicts, and environmental and resource security. Using concepts and tools from collective action, I assess these challenges and suggest effective policies for addressing them. NATO still has a crucial role to play in maintaining world security in the post‐Cold War era.     

Pricing war within a real option framework∗

The aim of this paper is to provide insights on war spending using simple tools of financial calculus rather than developing a general theory. Combining Grossman and Han's theory of war finance with the empirical literature that displays a straightforward relationship between the real value of money and wartime military events, we advocate the use of the real option approach of war spending. Some calculations and an empirical example illustrate this approach.     

An Empirical Analysis of the Arms Race Between South and North Korea

This study analyses an arms race between South and North Korea over the period 1963–2000. Despite the strategic importance of the Korean Peninsula, the arms race between South and North Korea has rarely been studied. In this study, the South–North arms race is empirically estimated using Richardson’s action–reaction model. The pattern of South–North arms race between the Cold War (1963–1989) and the post‐Cold War eras (1990–2000) as well as the existence of an arms race is examined comparing both countries’ defence spending, number of military personnel and tactical aircraft.     

RAISING THE COST OF REBELLION: THE ROLE OF THIRD‐PARTY INTERVENTION IN INTRASTATE CONFLICT

This paper presents a simple model to characterize explicitly the role that an intervening third party plays in raising the cost of rebellion in an intrastate conflict. Extending the Gershenson‐Grossman (2000 Gershenson, D. and Grossman, H.I. 2000. Civil conflict: ended or never ending?. Journal of Conflict Resolution, 44(6): 807–821.  [Google Scholar]) framework of conflict in a two‐stage game to the case involving outside intervention in a three‐stage game as in Chang et al. (2007b Chang, Y.‐M., Potter, J. and Sanders, S. 2007b. War and peace: third‐party intervention in conflict. European Journal of Political Economy, 23(4): 954–974.  [Google Scholar]), we examine the conditions under which an outside party optimally intervenes such that (i) the strength of the rebel group is diminished or (ii) the rebellion is deterred altogether. We also find conditions in which a third party optimally intervenes but at a level insufficient to deter rebellion. Such behavior, which improves the incumbent government’s potential to succeed in conflict, is overlooked in some conflict studies evaluating the effectiveness of intervention. One policy implication of the model is that an increase in the strength of inter‐governmental trade partnerships increases the likelihood that third‐party intervention deters rebellion.     

TERRORISM AND TOURISM: THE CASE OF TURKEY

Using a time series method called ‘transfer function’, this paper examines the effect of terrorism on tourism in Turkey. The results indicate that there exists a negative but small impact of terrorism, which is observed within approximately one year. However, terrorist attacks in Turkey have accounted for a reduction of six million foreign tourists over the last nine years. Moreover, the economic cost of terrorism in the tourism industry was more than $700 million in 2006. However, terrorist attacks in continental Europe and America, and an active war involving a neighboring country, had no effects on tourism in Turkey.     

Determinants of southeast asian military spending in the post-cold war era: a dynamic panel analysis

This study examines the demand of military expenditure among Southeast Asian countries since the end of the Cold War. By using a dynamic panel approach, I find that military spending in the region has been jointly determined by economic, strategic and socio-political factors. In particular, surging foreign debt burdens and the rise of China – two regional issues that gained prominence in the post-Cold War period – show their significance as determinants along with other generalist variables. The results therefore ask for the development of even-handed and region-sensitive approaches to studying military build-up in the region of Southeast Asia.     

QUANTIFYING GREED AND GRIEVANCE IN CIVIL WAR: THE AMERICAN WAR OF INDEPENDENCE

‘Greed’ vs. ‘grievance’ is weighed using a generally applicable methodology as motivations in the American War of Independence. Greed is quantified as the expected economic benefit of Independence – escaping colonial trade burdens and expected increased economic growth rates. Grievance is measured as willingness to pay to escape perceived political burdens. Quantification of the relative contributions is made possible by using estimates of expected war-costs. To the extent that the economic burden was insufficient to explain the War, the residual is ascribed to the grievance motivation. Both motives are shown to have contributed to the War, but grievance dominates.     

The economic policy of acquiring foreign currency in wartime: The example of Croatia

This paper attempts to describe the methods employed by the Croatian government in order to acquire the foreign currency which was essential for strategic imports during the period 1991–1995. The starting point for this was the fact that foreign currency was in the hands of Croatian households, export companies, and Croatian companies abroad. The Croatian central bank gained access to households’ foreign currency principally by gaining their confidence. It gained access to companies’ currency by means of “export rights”, and perhaps also as a result of the integration of political and economic positions which was a relic of the former Yugoslavia.     

FOUNDATIONS FOR REGIONAL SECURITY: PREPARING TO KEEP THE PEACE IN SOUTHERN AFRICA

Since the terrorist attacks of 11 September 2001, the continent of Africa, particularly Greater East Africa, has played an increasingly signifi cant role in United States (US) national security strategy. Transnational security threats and political authoritarianism continue to plague the region, creating calls for greater US and international involvement. Before reacting to the situation, however, it is prudent to pause, reflect, and understand that the United States developed strategic relations with nation-states in the region well before contemporary concerns for international terrorism and ungoverned spaces entered the strategic lexicon. Toward a more comprehensive understanding of Greater East Africa's strategic history, this paper examines the core strategic relationship in the region, US-Kenya relations, its origins and implications, and offers policy recommendations that will affect future international security.