Perhaps democracy’s economic system causes peace.
- States that trade together tend not to fight each other.
- Conflict prevents states from trading with each other.
- Trade is mutually beneficial.
- Thus, two states that trade with each other find war more costly than states that do not trade with each other.
- We call this the economic interdependence.
- Democracy leads to capitalist economic systems, which in turn leads to peace. Therefore, the democratic peace might just be a statistical artifact of economic interdependence.