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Economic Interdependence and Peaceful Power Transition
Unformatted Document Text:  14 dominant state is conflictual. We can also expect that a satisfied country with very high level of economic interdependence is less likely to challenger the status quo. The interaction of speed of overtaking and economic interdependence specifies that fast overtaking together with higher economic interdependence promotes peaceful transition while prolonged parity and low level of economic interdependence associates with conflictual transition. Dependent variable Conflict and Integration A conflict-integration score is composed to measure this concept. The measure captures the relative propensity toward two extremes: conflict and cooperation. The score ranges from -5 to 5 where -5 represents total cooperation, 5 represents major war and 0 is neutrality. As the score increases, the probability of conflict goes up. Then the decrease of the score means the greater chances of cooperation. The first part of the conflict- integration data ranging from 0 to 5, represents the increasing intensities of conflict. In this thesis, I recode the Hostility Level data provided by the Correlated of War (COW) project into one part of the conflict-integration score. The hostility level data is transformed into interval level data. The other part of the conflict-integration score represents increasing intensities of integration. I recode the alliance formation data provided by the Correlates of War (COW) project into the score between -5 to 0. Independent variables: Relative Power The measure of power has always been the focal point in conflict studies. A widely used measure of power is GDP, as it is essential to national capability. Many other

Authors: Zhou, Xinwu.
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dominant state is conflictual. We can also expect that a satisfied country with very high
level of economic interdependence is less likely to challenger the status quo. The
interaction of speed of overtaking and economic interdependence specifies that fast
overtaking together with higher economic interdependence promotes peaceful transition
while prolonged parity and low level of economic interdependence associates with
conflictual transition.
Dependent variable
Conflict and Integration
A conflict-integration score is composed to measure this concept. The measure
captures the relative propensity toward two extremes: conflict and cooperation. The score
ranges from -5 to 5 where -5 represents total cooperation, 5 represents major war and 0 is
neutrality. As the score increases, the probability of conflict goes up. Then the decrease
of the score means the greater chances of cooperation. The first part of the conflict-
integration data ranging from 0 to 5, represents the increasing intensities of conflict. In
this thesis, I recode the Hostility Level data provided by the Correlated of War (COW)
project into one part of the conflict-integration score. The hostility level data is
transformed into interval level data. The other part of the conflict-integration score
represents increasing intensities of integration. I recode the alliance formation data
provided by the Correlates of War (COW) project into the score between -5 to 0.
Independent variables:
Relative Power
The measure of power has always been the focal point in conflict studies. A widely
used measure of power is GDP, as it is essential to national capability. Many other


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