References (54)


Citations (9)



Macroeconomic Effects of the War in Mozambique

Tilman Brück

Stockholm International Peace Research Institute (SIPRI); Institute for the Study of Labor (IZA)


Queen Elizabeth House Working Paper No. 11

The aim of this paper is to analyse some macroeconomic channels operating in a war economy. At the theoretical level, the effects of such war on the key economic variables capital, technology, uncertainty, and the government's fiscal deficit are discussed before proceeding to the analysis of individuals, firms and the government. These elements are combined in a dynamic macroeconomic model to study a war's impact on output, growth, consumption, welfare and the national debt. The final section of this paper considers economic policy implications for a government at war, and for donors supporting a war economy. Both the theory and the evidence, drawn from Mozambique, suggest that while capital destruction is the most obvious cost of conflict the long-term development potential of a war economy is more severely damaged by increases in the fiscal deficit, uncertainty and transactions inefficiency. Furthermore, economic policies implemented during a war will determine the size and nature of the country's long-term peace dividend.

Number of Pages in PDF File: 63

Keywords: war, conflict, development, macroeconomics, Mozambique, reconstruction, peace dividend

JEL Classification: O11, O55, E63, H56, N17, N47

working papers series

Download This Paper

Date posted: February 19, 2001  

Suggested Citation

Brück, Tilman, Macroeconomic Effects of the War in Mozambique (1997). Queen Elizabeth House Working Paper No. 11. Available at SSRN: http://ssrn.com/abstract=259490 or http://dx.doi.org/10.2139/ssrn.259490

Contact Information

Tilman Brück (Contact Author)
Stockholm International Peace Research Institute (SIPRI) ( email )
Signalistgatan 9, SE-169 70
HOME PAGE: http://www.sipri.org
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Feedback to SSRN

Paper statistics
Abstract Views: 2,031
Downloads: 217
Download Rank: 82,144
References:  54
Citations:  9

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.312 seconds