Managing the Indo-Pakistan Conflict through the Economic Factor (1998-2010)

The link between international conflict and economy linkage is one of the focal subjects in international political economy (IPE). The aim of this article is to scrutinise the impact of the economic factor on managing Indo-Pakistan conflict based on IPE approaches. So, the article organizes as follows: first, it is tried to provide a brief coherent theoretical framework concentrated on conflict-economy linkage; this contributes to idenifying two macro variables: bilateral cooperation and economy-oriented policy. Second, Indo-Pakistan cooperation is studied through two indices of bilateral trade and investment. Third, using available data, it is demonstrated that economy-oriented policy by the countries has deterred them from reciprocal hostile actions and led them to prudent conducts. The paper will be ended with a conclusion.