The question of whether economic interdependence promotes peace is more than ever relevant once and again due to a series of conflicts around the globe. Two schools advocate the two opposite beliefs; these are Realism and Liberalism. The former supports that economic interdependence does not necessarily promote peace, whereas the latter trusts that it does. In our paper, we use a financial analysis —econometric approach to realize that there is evidence that supports that economic interdependence between two states in conflict does not promote peace since it has no significant impact on the configuration of the conflict. Consequently, it does not provide a significant enhancement in the levels of national security.
Grieco, J. (1988) Anarchy and the Limits of Cooperation: A Realist Critique of the Newest Liberal Institution. International Organization, 42, 485-507. https://doi.org/10.1017/S0020818300027715
Gilpin, R. (1981) War and Change in World Politics. Cambridge University Press, New York. https://doi.org/10.1017/CBO9780511664267
Mastanduno, M. (1998) Economics and Security in Statecraft and Scholarship. International Organization, 52, 825-854. https://doi.org/10.1162/002081898550761
Dunne, T. (2008) Liberalism. In: Baylis, J., Smith, S. and Owens, P., Eds., The Globalization of World Politics, 4th Edition, Oxford University Press, Oxford, 108-123.
Keohane, R. and Nye, J. (1972) Transnational Relations and World Politics. Harvard University Press, Cambridge, MA. https://doi.org/10.4159/harvard.9780674593152
Keohane, R. and Nye, J. (2001) Power and Interdependence. 3rd Edition, United States of America, Longman.
Long, A.G. (2008) Bilateral Trade in the Shadow of Armed Conflict. International Studies Quarterly, 52, 81-101. https://doi.org/10.1111/j.1468-2478.2007.00492.x
Keohane, R. and Nye, J. (1977) Power and Interdependence: World Politics in Transition. Little Brown, Boston.
Hirschman, Al., (1945) National Power and the Structure of Foreign Trade. University of California Press, Berkeley, Los Angeles, London.
Krasner, S. (1978) Defending the National Interest: Raw Materials Investments and US Foreign Policy. Princeton University Press, Princeton.
Gowa, J. and Mansfield, E.D. (1993) Power Politics and International Trade. American Political Science Review, 87, 408-420. https://doi.org/10.2307/2939050
Oneal, J. and Russet, B. (1999) Assessing the Liberal Peace with Alternative Specifications: Trade Still Reduces Conflict. Journal of Peace Research, 36, 423-442. https://doi.org/10.1177/0022343399036004003
Morrow, J. (1999) How Could Trade Affect Conflict? Journal of Peace Research, 36, 481-489. https://doi.org/10.1177/0022343399036004006
Gartzke, E., Li, Q. and Boehmer, C. (2001) Investing in the Peace: Economic Interdependence and International Conflict. International Organization, 55, 391-438. https://doi.org/10.1162/00208180151140612
Hegre, H. (2004) Development and the Liberal Peace: What Does It Take to Be a Trading State? Journal of Peace Research, 37, 5-30.
Li, Q. and Sacko, D. (2002) The (Ir) Relevance of Militarized Interstate Disputes for International Trade. International Studies Quarterly, 46, 11-43. https://doi.org/10.1111/1468-2478.00221
Long, A. and Leeds, B. (2006) Trading for Security: Military Alliances and Economic Agreements. Journal of Peace Research, 43, 433-451. https://doi.org/10.1177/0022343306065884
Gelpi, C. and Grieco, J. (2008) Democracy Interdependence and the Sources of the Liberal Peace. Journal of Peace Research, 45, 17-36. https://doi.org/10.1177/0022343307084921
Maoz, Z. (2009) The Effects of Strategic and Economic Interdependence on International Conflict across Levels of Analysis. American Journal of Political Science, 53, 223-240. https://doi.org/10.1111/j.1540-5907.2008.00367.x
Herge, H., Oneal, J. and Russett, B. (2010) Trade Does Promote Peace: New Simultaneous Estimates of the Reciprocal Effects of Trade and Conflict. Journal of Peace Research, 47, 763-774. https://doi.org/10.1177/0022343310385995
Li, Q. and Reuveny, R. (2011) Does Trade Prevent or Promote Interstate Conflict Initiation? Journal of Peace Research, 48, 437-453. https://doi.org/10.1177/0022343311406306
Goldsmith, B. (2013) International Trade and the Onset and Escalation of Interstate Conflict: More to Fight about, or More Reasons Not to Fight? Defence and Peace Economics, 24, 555-578. https://doi.org/10.1080/10242694.2013.763637
Copeland, D. (1996) Economic Interdependence and War: A Theory of Trade Expectations. International Security, 20, 5-41. https://doi.org/10.1162/isec.20.4.5
Kapstein, Et. (2002) Two Dismal Sciences Are Better than One-Economics and the Study of National Security. International Security, 27, 158-187. https://doi.org/10.1162/01622880260553660
Martin, Ph., Mayer, Th. and Thoenig, Mat. (2008) Make Trade Not War? Review of Economic Studies, 75, 865-900. https://doi.org/10.1111/j.1467-937X.2008.00492.x
Barbieri, K. and Levy, J. (1999) Sleeping with the Enemy: The Impact of War on Trade. Journal of Peace Research, 36, 463-479. https://doi.org/10.1177/0022343399036004005
Powers, K. (2004) Regional Trade Agreement as Military Alliances, International Interactions: Empirical and Theoretical Research. International Relations, 30, 373-395.
Giallouridis, Ch. (2001) The Greek-Turkish Conflict: From Cyprus to Imia, the S300 and Helsinki 1955-2000. Athens, Sideris.
Treaty of Lausanne (2018) Wiener Zeitung. https://www.wienerzeitung.at/_em_daten/_wzo/2015/03/13/150313_1621_1923_ treaty_of_lausanne.pdf
Evagorou, Ev. (2010) The Greek-Turkish Relations from 1923 until Today. Vari, Poiotita.
NATO (2018) NATO Member Countries. https://www.nato.int/cps/en/natohq/nato_countries.htm
Turkish Ministry of Foreign Affairs (2018) Aegean Problems. http://www.mfa.gov.tr/sub.en.mfa?deb1dc4c-926f-45bd-9a7c-27b45654c0e4
Hellenic Ministry of Foreign Affairs (2018) Issues of Greek-Turkish Relations. https://www.mfa.gr/en/issues-of-greek-turkish-relations
Tsarouhas D. (2009) The Political Economy of Greek-Turkish Relations. Southeast European and Black Sea Studies, 9, 39-57. https://doi.org/10.1080/14683850902723397
Roukanas, S. and Sklias, P. (2014) The Hellenic Political Economy 2000-2010: From the EMU to the Mechanism Support. Athens, Livani. (In Greek)
Kotios, A. and Roukanas, S. (2013) The Greek Crisis and the Crisis in Eurozone’s Governance. In: Sklias, P. and Tzifakis, N., Eds., Greece’s Horizons: Reflecting on the Country’s Assets and Capabilities, Springer, Athens, 91-105. https://doi.org/10.1007/978-3-642-34534-0_8
World Bank (2017) World Bank Open Data. https://data.worldbank.org
(2018) Direction of Trade Statistics (DOTS). https://data.world/imf/direction-of-trade-statistics-dots
Hellenic Ministry of Foreign Affairs-Directorate A4: Turkey (2015).
Hellenic National Defense General Staff (2018) Violations. http://www.geetha.mil.gr/el/violations-gr.html
Stockholm International Peace Research Institute (SIPRI) (2018) Military Spending and Armaments. http://www.sipri.org/research/armaments/milex/milex_database
Kollias, Chr. (2004) The Greek-Turkish Rapprochement, the Underlying Military Tension and Greek Defense Spending. Turkish Studies, 5, 99-116. https://doi.org/10.1080/14683849.2004.9687244