Model

Variables

Dependent

Rationale

Independent

Rationale

(1)

Defense expenses—country 1

The choice of defense expenses as a proxy of interstate conflict is justified by the fact that they reflect the understanding of the country with regards to the threat posed by the rival.

Exports_1 to 2

Exports_2 to 1

The selection of exports and imports as proxies of economic interdependence is explained by the fact that they reflect the magnitude of the bilateral trade that takes place between the countries.

(2)

Defense expenses—country 1

Imports_1 to 2

Imports_2 to 1

(3)

Defense expenses—country 2

Exports_1 to 2

Exports_2 to 1

(4)

Defense expenses—country 2

Imports_1 to 2

Imports_2 to 1