The relationship between growing trade interdependence and the reduction of militarised inter-state conflict is one of the central theoretical tenets in neo-liberal institutionalism. This tenet, under various theoretical guises, is evaluated critically in this article. Using two illustrative examples, it is argued here that under certain specific conditions, trade interdependence is unlikely to occur and therefore the expected palliative effect of trade on militarised inter-state conflict cannot take place.
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