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Liberal scholars in the international relations discipline argue that peace among nations would be the consequence of three complementary influences. First, republican constitutions eliminate autocratic caprice in waging war. Second, “an understanding of the legitimate rights of all citizens and of all republics comes into play ” with the spread of democracy. This creates a moral foundation for the liberal peace, upon which eventually an edifice of international law can be built. Lastly, economic interdependence reinforces constitutional constraints and liberal norms by creating transnational ties that encourage accommodation rather than conflict. Thus material incentives add their force to law and morality. This paper is an analysis of how change in the level of economic interdependence in a subsystem influences international conflicts within it. The research comparatively analyzes empirical data from two subsystems, OECD and ASEAN. This research is distinctive in that (1) it simultaneously examines the Kantian peace theory’s three “legs”, democracy, inter-governmental organizations and free trade, (2) it provides an aggregated, group-level analysis of economic interdependence, and (3) it differentiates international conflicts between lower intensity conflict and militarized interstate disputes.
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