Exit Stage Market: Market Structure, Interstate Economic Interdependence and Conflict

Abstract

A multi-method approach provides an empirical examination of the exit model and its predictions. Case histories involving the U.S. and South Africa, China and the U.S., and Great Britain and Argentina illustrate the strengths and weaknesses of the exit model as an analytical tool. A more systematic investigation of the model and its predictions regarding how interdependence influences conflict follows using large-n statistical methods. The results provide support for the fundamental predictions of the model.