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We are living in an increasingly globalized world yet with constant and endless con ‡icts among countries. While studies have uncovered the impacts of various economic factors and policy regimes on trade and investment, a much less understood issue is whether con ‡icts among countries have any, especially long-lasting, impacts on crossborder trade and investment. In this paper, we exploit one of the most important con ‡icts of the 20th century between what are currently the world's second anddoi:10.2139/ssrn.2057444 fatcat:zbn2hqjm3zbypoh42zcim4pcia