(T4P) and its contribution

  • Trade can support peaceful coexistence and prosperity. A simple theoretical framework becomes necessary to sustain peaceful coexistence over long time horizons through financial innovations. .

  • Empirical analysis, based on an extensive panel data set of 243,225 country‐pair observations from 1950 to 2000, confirms that an increase in bilateral trade interdependence significantly promotes peace. It also suggests that the peace‐promotion effect of bilateral trade integration is significantly higher for contiguous countries that are likely to experience more conflict. .

  • More importantly, that not only bilateral trade but global trade openness also significantly promote peace. .

  • However, an increase in global trade openness reduces the probability of interstate conflict more for countries far apart from each other than it does for countries sharing borders. .

  • The main finding of the peace‐promotion effect of bilateral and global trade integration holds robust when controlling for the simultaneous determination of trade and peace. .

  • The global trade interdependence promotes and supports peaceful coexistence between the nations. .

  • The democratic values are the factors which contribute to the utmost importance in promoting Peace and Harmony between countries. .

  • Numerous factors contribute to promoting the harmony between the countries, mainly economic interest. History shows that the nations who are interdependent on trade do not wage war quickly and stay in Peace as they share common interests. Without using the force to retain violence, any mild disputes resolved as both countries would be at a loss. .

  • The nations don't cooperate because of their similar political systems, but their mutual economic interests. International trade is the critical factor which acts as a catalyst to this shared prosperity. When nations are engaged in trade and business, they will also be at Peace. .