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Civil Wars and Economic Growth in Sub-Saharan Africa1

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  • Kwabena Gyimah-Brempong
  • Marva E. Corley

Abstract

This paper uses panel data from a sample of Sub-Saharan African (SSA) countries over the 1960--96 period and both Instrumental Variables (IV) and dynamic panel data (DPD98) estimator to investigate the effect of the incidence and severity of civil war on the growth rate of per capita income. We find that both factors have a robust, negative and statistically significant effect on the growth rate of per capita income. We find that civil war affects the growth rate of income partly through reduced investment in physical capital. However, if one does not control for the correlation between civil war incidence and other growth factors, the estimated effect of civil war on economic growth is not robust. We are unable to find any significant relationship between the level of income and the incidence of civil war in SSA countries after controlling for other variables that are correlated with income levels. Copyright 2005, Oxford University Press.

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Bibliographic Info

Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 14 (2005)
Issue (Month): 2 (June)
Pages: 270-311

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Handle: RePEc:oup:jafrec:v:14:y:2005:i:2:p:270-311

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Cited by:
  1. Bodea, Cristina & Elbadawi, Ibrahim A., 2008. "Political violence and economic growth," Policy Research Working Paper Series 4692, The World Bank.
  2. Dhaneshwar Ghura & Rina Bhattacharya, 2006. "Oil and Growth in the Republic of Congo," IMF Working Papers 06/185, International Monetary Fund.
  3. Augustin Kwasi Fosu, 2010. "Africa's Economic Future: Learning from the Past," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 11(1), pages 62-71, 04.
  4. Kumudini R. Ganegodage & Alicia N. Rambaldi, 2012. "Economic Consequences of War: Evidence from Sri Lanka," Discussion Papers Series 453, School of Economics, University of Queensland, Australia.
  5. Asiedu, Elizabeth & Lien, Donald, 2004. "Capital Controls and Foreign Direct Investment," World Development, Elsevier, vol. 32(3), pages 479-490, March.
  6. Augustin Kwasi Fosu, 2012. "Growth of African Economies: Productivity, Policy Syndromes and the Importance of Institutions," CSAE Working Paper Series 2012-11, Centre for the Study of African Economies, University of Oxford.

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