The Globalization and Peace Nexus: Findings Using Two Composite Indices

Abstract

Drawing on the democratic peace theory, the democracy promoting globalisation hypothesis and the conflict inhibiting effects of international trade literature the paper examines empirically the link between peace and globalization. To this effect, it uses two composite indices. The KOF index that allows for the multidimensionality of the globalization process and the GPI that adopts and quantifies a broader notion of peace, allowing for both an internal as well as an external dimension. The sample, dictated solely by data availability, consists of 132 countries and covers the period 2008–2012. The findings from estimating a dynamic panel model using various estimators seem to marginally tilt in favor of a peace promoting globalization hypothesis. © 2016, Springer Science+Business Media Dordrecht.