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https://ssrn.com/abstract=1556550
 
 

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Does Conflict Disrupt Growth? Evidence of the Relationship between Political Instability and National Economic Performance


Solomon W. Polachek


State University of New York at Binghamton; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Daria Sevastianova


affiliation not provided to SSRN


IZA Discussion Paper No. 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.

Number of Pages in PDF File: 51

Keywords: war, economic growth, conflict

JEL Classification: C2, O1, O47, O57, P47, P52


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Date posted: February 22, 2010  

Suggested Citation

Polachek, Solomon W. and Sevastianova, Daria, Does Conflict Disrupt Growth? Evidence of the Relationship between Political Instability and National Economic Performance. IZA Discussion Paper No. 4762. Available at SSRN: https://ssrn.com/abstract=1556550

Contact Information

Solomon W. Polachek (Contact Author)
State University of New York at Binghamton ( email )
Binghamton, NY 13902-6000
United States
607-777-2144 (Phone)
607-777-4900 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
IZA Institute of Labor Economics ( email )
P.O. Box 7240
Bonn, D-53072
Germany

Daria Sevastianova
affiliation not provided to SSRN
No Address Available
Feedback to SSRN


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