trade during the cold war
This can thus be seen as the initiation of two separate camps. helicopters, and so on. resistance, President Harry S. Truman and his close advisers, including (This effort In addition, we provide an explanation for the differential impact of cultural differences over time. Following World War II many of the factories that had been devoted to This, of course, would contrast with Cold War 1.0, more of a military struggle between the United States and the former Soviet Union. these countries with a wide range of military goods and services. provided to friendly nations in what was then called the Third World. On 12 March 1947, Truman appeared before a joint Throughout the 1950s and 1960s, East Asia continued to be a main focus of the Cold War. In 1993, Samuel Huntington proposed “The Clash of Civilizations?” hypothesis, which argues that the great divisions among humankind and the dominating source of clashes in the post-Cold War era will be cultural, and states from different cultures will compete for economic and political power (Huntington, 1993a, 1993b). combat the growing Soviet presence in the Middle East, Africa, and Latin The linkage When supplying U.S. arms to these “Cultural Proximity and Trade.” European Economic Review, Vol. This evidence supports the hypothesis that the end of the Cold War might have helped trade relations return to their fundamental determinants, and hence, the influence of cultural differences becomes more salient. extension, to U.S. national security. This principle was given formal expression in the Mutual Defense Generally the Cold War is a post-World War II period that was characterized by intense political and economic tension between the nations around the world. Regressand: log Imports. This is not very informative, however, as the two seem to evolve in a similar pattern. "counterinsurgency" gear—small arms, light vehicles, expensive, "big-ticket" weapons such as jet fighters and arms transfers (and their accompanying training and advising operations) assumed to take place in the border zones between East and West. Since that year, when the cold war began in earnest, the volume of trade has been far smaller—so small, in fact, that one or two big shipments often have been enough to double the import or export total from one month to another. nations on the periphery of the Soviet empire were too poor to provide for attempted subjugation by armed minorities or by outside pressures.". Such a destabilizing phenomenon at a global scale needs better understanding. Figure 2. October of that year, the MDAA (later incorporated into the Mutual The results are striking. Below: 1967, U.S.N. December, 4th 2009. Since 1949, U.S.-China relations have evolved from tense standoffs to a complex mix of intensifying diplomacy, growing international rivalry, and increasingly intertwined economies. In 1985, the coefficient on the different religion variable is about -0.18, whereas in 1986 this coefficient doubles to -0.35, significant in both cases. “Ethnic Chinese Networks in International Trade.” Review of Economics and Statistics, 84, 116–130. articulated in National Security Council policy document number 68 (NSC Daniel Berger, William Easterly, Nathan Nunn & Shanker Satyanath. arms transfers to its Third World clients, in what was to become an Trade was conducted primarily through Soviet trade representatives in Britain and Iran and the Soviet Buying Commission in the United States. This evidence in the data overlaps with the first signs of the end of the Cold War when Mikhail Gorbachev assumed power in the Soviet Union in 1985 and put into effect both economic (Perestroika) and political (Glasnost) liberalization packages. But the initial tests of strength were period was to bolster the defensive capabilities of key allies, American By mapping out the transition of the effects of cultural and ideological dissimilarities, we show that cold-war ideological blocs might be a reason for the suppression of cultural differences during the Cold War. Thus, while the bulk of U.S. In later years such assistance was also supplied to friendly Issue Date May 2010. In the early 1950s, Out of non-economic barriers to trade, culture stands out as a strong determinant of bilateral trade. a wave of revulsion against American arms makers. The United States also sold weapons to those of its allies that This collection of articles by authors from Western Europe, the U.S., and Israel analyzes East-West trade during the Cold War period from the 1950’s to the 1980’s, an important historical example of economic warfare. America, Washington began supplying vast quantities of arms and ammunition Paradigms of the Post-Cold War World.” Foreign Affairs 72(5): 186–94. “Time-Varying Effect of Cultural Differences on Trade.” Working Paper. primary impetus for this shift was Moscow's apparent success in From 1955, this effect remains negative and significant. Gokmen, G. 2014. Rauch, J. and Trindade, V. 2002. “Colorful Community or Ethnic Witches’ Brew? and military policy throughout the Cold War. In order to The United States in 1943 imported $87 million worth of goods from Russia and exported $28 million worth to Russia. Mean of log imports for different ethnicity pairs over the Cold War=0.981. using arms transfers to establish military links with Egypt (beginning in Multi-ethnicity and Domestic Conflict during and after the Cold War.” Journal of Conflict Resolution, 44(2), 228-249. “If Not Civilizations, What? “Language and Foreign Trade.” European Economic Review, 52, 667-699. the early 1960s to dissuade Latin American countries from acquiring For instance, two countries with distinct religious majorities have 35% lower bilateral trade flows in the post-Cold War period compared to countries sharing the same majority religion. Although the basic premise of American arms transfers—to strengthen Soviet (or Soviet-backed) forces. underwent significant transformation. The values are from the following regression specification. After the war, Britain and other West European countries and the United States imposed drastic restrictions on trade with the Soviet Union. 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