Editing Economic interdependence (section)

{{short description|Mutual dependence of parties that trade within an economic system}}
'''Economic interdependence''' is the mutual dependence of the participants in an [[economic system]] who trade in order to obtain the products they cannot produce efficiently for themselves.  Such trading relationships require that the behavior of a participant affects its trading partners and it would be costly to rupture their relationship.<ref>{{Cite book |last1=Mansfield |first1=Edward Deering |url=https://books.google.com/books?id=qSOFAAAAIAAJ |title=Economic Interdependence and International Conflict: New Perspectives on an Enduring Debate |last2=Pollins |first2=Brian M. |date=2003 |publisher=University of Michigan Press |isbn=978-0-472-09827-9 |language=en}}</ref> The subject was addressed by [[Antoine_Augustin_Cournot|A. A. Cournot]] who wrote: "...but in reality the economic system is a whole in which all of the parts are connected and react on one another. An increase in the income of the producers of commodity A will affect the demands for commodities B, C, etc. and the incomes of their producers, and by its reaction will affect the demand for commodity A."<ref>{{Cite book |last=Cournot |first=Antoine |title=Researches into the Mathematical Theory of Wealth |year=1838 |page=127 |translator=Nathaniel Bacon}}</ref> Economic Interdependence is evidently a consequence of the [[division of labour]].

David Baldwin conceptualizes international economic interdependence as the [[opportunity cost]]s incurred from potential exit costs that incur as a result of breaking existing economic ties between nations. Others argue that it entails the degree of sensitivity of a country's economic behavior to policies and development of countries outside its border.<ref name=":0">{{Cite journal|title = Interdependence and power: a conceptual analysis|journal = International Organization|date = 1980|issn = 1531-5088|pages = 471–506|volume = 34|issue = 4|doi = 10.1017/S0020818300018828|first = David A.|last = Baldwin| s2cid=10757441 }}</ref> Global economic interdependence has grown in the post-World War II period as a result of technological progress (e.g. computerization, containerization, low-cost travel, low-cost communications) and associated policies that were aimed at opening national economies internally and externally to global competition.<ref>{{Cite web|url=https://www.un.org/en/development/desa/oesc/globalization.shtml|title=UN DESA {{!}} Office for Economic and Social Council Support and Coordination|website=www.un.org}}</ref><ref>{{Cite book|last=Paehlke|first=Robert|title=Globalization, Interdependence and Sustainability. In Introduction to Sustainable Development – Volume 1|publisher=[[Encyclopedia of Life Support Systems]] (EOLSS)|year=2009}}</ref><ref>{{Cite web|last=World Trade Organization|date=2008|title=World Trade Report 2008 (Trade in a Globalizing World)|url=https://www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report08_e.pdf|access-date=26 October 2015}}</ref>

Some international relations scholars posit that economic interdependence contributes to peaceful relations between states.<ref name=":4" /><ref name=":6" /><ref name=":5" /><ref name=":7" /><ref>{{Cite book|last1=Gent|first1=Stephen E.|url=https://books.google.com/books?id=gvYTEAAAQBAJ|title=Market Power Politics: War, Institutions, and Strategic Delay in World Politics|last2=Crescenzi|first2=Mark J. C.|date=2021|publisher=Oxford University Press|isbn=978-0-19-752982-9|language=en}}</ref><ref>{{Cite journal|last1=Lupu|first1=Yonatan|last2=Traag|first2=Vincent A.|date=2012|title=Trading Communities, the Networked Structure of International Relations, and the Kantian Peace|url=https://journals.sagepub.com/doi/abs/10.1177/0022002712453708|journal=Journal of Conflict Resolution|volume=57|issue=6|pages=1011–1042|doi=10.1177/0022002712453708|s2cid=220643183|issn=0022-0027|url-access=subscription}}</ref> Other scholars argue that the relationship is more nuanced or emphasize the ways in which interdependence can contribute to conflict between states.<ref name=":8" /><ref name=":9" /><ref name=":10" /><ref name=":3" /><ref>{{Cite book |last=Copeland |first=Dale C. |title=A World Safe for Commerce: American Foreign Policy from the Revolution to the Rise of China |date=2024 |publisher=Princeton University Press |isbn=978-0-691-17255-2 |language=en}}</ref> For example, through their work on "weaponized interdependence", [[Abraham L. Newman|Abraham Newman]] and [[Henry Farrell (political scientist)|Henry Farrell]] have outlined how states that possess effective jurisdiction over central economic nodes can use these nodes for coercive economic leverage against adversaries.<ref name=":8" /> [[Victor Cha|Viktor Cha]] has argued that economic interdependence in East Asia can both be a tool of coercion by China but can also be exploited by China's neighbors to deter China if they all work together against China.<ref>{{Cite journal |last=Cha |first=Victor D. |date=2023 |title=Collective Resilience: Deterring China's Weaponization of Economic Interdependence |url=http://dx.doi.org/10.1162/isec_a_00465 |journal=International Security |volume=48 |issue=1 |pages=91–124 |doi=10.1162/isec_a_00465 |issn=0162-2889}}</ref>