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Title:Does conflict disrupt growth? Evidence of the relationship between political instability and national economic performance PDF Logo
Authors:Polachek, Solomon W.
Sevastianova, Daria
Issue Date:2010
Series/Report no.:IZA Discussion Papers 4762
Abstract:Current empirical growth models limit the determinants of country growth to geographic, economic, and institutional variables. This study draws on conflict variables from the Correlates of War (COW) project to ask a critical question: How do different types of conflict affect country growth rates? It finds that wars slow the economy. Estimates indicate that civil war reduces annual growth by .01 to .13 percentage points, and high-intensity interstate conflict reduces annual growth by .18 to 2.77 percentage points. On the other hand, low-intensity conflict slows growth much less than high-intensity conflict, and may slightly increase it. The detrimental effect of conflict on growth is intensified when examining non-democracies, low income countries, and countries in Africa.
Subjects:Economic growth
war
conflict
JEL:C2
O1
O47
O57
P47
P52
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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