THE ROLE OF DOMESTIC COALITIONS IN CREATING COMMERCIAL PEACE AMONG POSTCOLONIAL STATES : SINO-INDIAN TERRITORIAL CONFLICT

Abstract

What explains the emergence of commercial peace in autarkic postcolonial states? Conventional commercial peace theory argues that gains from trade function as an inhibitor of interstate conflict and explanations have focused causality on economic variables like interstate trade flows. However, this approach does not consider the role played by domestic-level variables. By studying a unique class of states who were victims of colonialism, I argue commercial peace emerged when internationalists coalitions came into power at the expense of economic-nationalist coalitions. I test my explanation on the Sino-Indian territorial dispute comparing periods before and after the 1962 war. Ultimately, uncovering the role of domestic politics in causing commercial peace can sharpen the internal validity of the commercial peace theory.