mickthesick , From what you have said, I guess you used OLS right? Important missing variables: Inflation, human capital, pop growth + a couple others. I don't know why you included US GDP and how it became significant. How much is the trade worth anyway? How did you get your variables WAR and DEM? Are these dummy variables? What was the range of data? The unexpected results might be the consequences of omitted variables and incorrect use of functional form. If you used OLS, it might again be another problem. Anyway, a good topic for a paper.. By the way, did you do this project for a class?