hw5 - Political Science 233 Intermediate Statistical...

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Political Science 233 Intermediate Statistical Methods Homework 5: Dummy Variables and Functional Form Research Note Does Trade Really Follow the Flag? Realist scholars have often responded to liberal claims that trade prevents international conflict by arguing that “trade follows the flag.” Specifically, realist scholars have argued that states are more likely to trade with their allies because they do not fear that their trading partners will use their gains from trade to create military capabilities that could threaten them. In a recent liberal rebuttal, one scholar analyzed a random sample of interstate dyad-years between 1950 and 1991. On the basis of the analysis below, he claimed that shared alliance ties have no impact on the level of bilateral trade between states. . reg interdep allies yrspeace distance lncaprt border majdyds lowdem lowgdp Source | SS df MS Number of obs = 2709 ---------+------------------------------ F( 8, 2700) = 53.89 Model | 20.0581879 8 2.50727348 Prob > F = 0.0000 Residual | 125.611799 2700 .046522888 R-squared = 0.1377 ---------+------------------------------ Adj R-squared = 0.1351 Total | 145.669986 2708 .053792462 Root MSE = .21569 ------------------------------------------------------------------------------ interdep | Coef. Std. Err. t
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