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Revisiting Economic Shocks and Coups

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  • Nam Kyu Kim

Abstract

This article revisits the oft-cited relationship between economic shocks and coups. According to conventional wisdom, economic recessions trigger coups. However, existing empirical studies have not consistently produced supporting evidence for that relationship. This article claims that this is partly because existing studies have not differentiated transitory from permanent shocks to the economy. Two different economic shocks could have different effects on coups. Moreover, existing studies have not sufficiently addressed measurement error in gross domestic product (GDP) data. To overcome these problems, I use exogenous rainfall and temperature variation to instrument for economic growth. Instrumental estimates demonstrate, consistently across four different GDP per capita growth measures, that a decrease in GDP per capita growth rates, induced by short-run weather shocks, significantly increases the probability of a coup attempt. Conversely, noninstrumental variable estimates vary according to different GDP measures, and are close to zero, consistent with previous findings.

Suggested Citation

  • Nam Kyu Kim, 2016. "Revisiting Economic Shocks and Coups," Journal of Conflict Resolution, Peace Science Society (International), vol. 60(1), pages 3-31, February.
    • Handle: RePEc:sae:jocore:v:60:y:2016:i:1:p:3-31
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    Citations

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    Cited by:

    1. Boxell, Levi, 2019. "Droughts, conflict, and the African slave trade," Journal of Comparative Economics, Elsevier, vol. 47(4), pages 774-791.
    2. Martin Gassebner & Jerg Gutmann & Stefan Voigt, 2016. "When to expect a coup d’état? An extreme bounds analysis of coup determinants," Public Choice, Springer, vol. 169(3), pages 293-313, December.
    3. Dorsch, Michael T. & Maarek, Paul, 2018. "Rent extraction, revolutionary threat, and coups in non-democracies," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1082-1103.
    4. Suthan Krishnarajan, 2019. "Crisis? What crisis? Measuring economic crisis in political science," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1479-1493, May.
    5. Tackseung Jun, 2017. "Temperature, maize yield, and civil conflicts in sub-Saharan Africa," Climatic Change, Springer, vol. 142(1), pages 183-197, May.
    6. Martin-Shields, Charles P. & Stojetz, Wolfgang, 2019. "Food security and conflict: Empirical challenges and future opportunities for research and policy making on food security and conflict," World Development, Elsevier, vol. 119(C), pages 150-164.
    7. Antonis Adam & Kostas Karanatsis, 2019. "Sovereign Defaults and Democracy," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(1), pages 36-62, March.

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