The nexus of market society, liberal preferences, and democratic peace: interdisciplinary theory and evidence

Abstract

Drawing on literature from Anthropology, Economics, Political Science and Sociology, an interdisciplinary theory is presented that links the rise of contractual forms of exchange within a society with the proliferation of liberal values, democratic legitimacy, and peace among democratic nations. The theory accommodates old facts and yields a large number of new and testable ones, including the fact that the peace among democracies is limited to market-oriented states, and that market democracies-but not the other democracies-perceive common interests. Previous research confirms the first hypothesis; examination herein of UN roll call votes confirms the latter: the market democracies agree on global issues. The theory and evidence demonstrate that (a) the peace among democratic states may be a function of common interests derived from common economic structure; (b) all of the empirical research into the democratic peace is underspecified, as no study has considered an interaction of democracy with economic structure; (C) interests can be treated endogenously in social research; and (d) several of the premier puzzles in global politics are causally related-including the peace among democracies and the association of democratic stability and liberal political culture with market-oriented economic development.