Does Globalization Profit the Small Arms Bazaar?

Increasing globalization apparently weakens public authority, leading to social disarray, anomic violence, and general conditions that make handgun ownership and use more likely. Pro-globalists might argue contrarily that trade openness can raise the premium on peace as violence is bad for business.

Moreover, greater interdependence allows the diffusion of anti-proliferation norms and facilitates cooperative behavior among trading partners for stemming the demand for and proliferation of small arms. Using a unique dataset on small arms imports, we find that greater openness to trade and Foreign Direct Investment (FDI) lowers small arms imports per capita. A policy measure of economic freedom is associated with higher small arms imports, but this association seems to be explained entirely by the association between economic freedom and strong bureaucracies.