Does the U.S. Economy Benefit from U.S. Alliances and Forward Military Presence?

The authors evaluate the potential economic benefits of U.S. alliances and a forward military presence, a topic debated by scholars of grand strategy. A new statistical model provides evidence that U.S. alliances increase bilateral trade in manufactured goods, which has a modest but positive effect on overall U.S. economic welfare. Decisions about U.S. military engagement should be based on a range of factors including such economic benefits.