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The Economic Cost of the War in Sri Lanka

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  • Nisha Arunatilake

    (Department of Economics and Finance, La Trobe University)

  • Sisira Kumara Jayasuriya

    (Department of Economics and Finance, La Trobe University)

  • Saman Kelegama

    (Department of Economics and Finance, La Trobe University)

Abstract

There is growing interest in recent years in the economic dimensions of civil wars and other violent social conflicts. This paper discusses some of the conceptual and methodological problems associated with assessing the economic costs of such conflicts, and presents an evaluation of the costs of the (still ongoing) conflict in Sri Lanka. On conservative assumptions, the war may have cost the equivalent of twice Sri Lanka's 1996 GDP.

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Bibliographic Info

Paper provided by School of Economics, La Trobe University in its series Working Papers with number 1999.10.

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Length: 35 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:ltr:wpaper:1999.10

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Keywords: War; Economic History; Costs EDIRC Provider-Institution: RePEc:edi:smlatau;

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References

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  1. Deger, Saadet, 1986. "Economic Development and Defense Expenditure," Economic Development and Cultural Change, University of Chicago Press, vol. 35(1), pages 179-96, October.
  2. Lim, David, 1983. "Another Look at Growth and Defense in Less Developed Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 31(2), pages 377-84, January.
  3. Meghan O'Sullivan, 1997. "Household entitlements during wartime: The experience of Sri Lanka," Oxford Development Studies, Taylor & Francis Journals, vol. 25(1), pages 95-121.
  4. Grobar, Lisa Morris & Gnanaselvam, Shiranthi, 1993. "The Economic Effects of the Sri Lankan Civil War," Economic Development and Cultural Change, University of Chicago Press, vol. 41(2), pages 395-405, January.
  5. Mizon, Grayham E., 1995. "A simple message for autocorrelation correctors: Don't," Journal of Econometrics, Elsevier, vol. 69(1), pages 267-288, September.
  6. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
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Citations

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Cited by:
  1. Ganegodage, K. Renuka & Rambaldi, Alicia N., 2014. "Economic consequences of war: Evidence from Sri Lanka," Journal of Asian Economics, Elsevier, vol. 30(C), pages 42-53.
  2. Gupta, Sanjeev & Clements, Benedict & Bhattacharya, Rina & Chakravarti, Shamit, 2004. "Fiscal consequences of armed conflict and terrorism in low- and middle-income countries," European Journal of Political Economy, Elsevier, vol. 20(2), pages 403-421, June.
  3. Sharma, Kishor, 2006. "The political economy of civil war in Nepal," World Development, Elsevier, vol. 34(7), pages 1237-1253, July.
  4. Rajesh Venugopal, . "The Global Dimensions of Conflict in Sri Lanka," QEH Working Papers qehwps99, Queen Elizabeth House, University of Oxford.
  5. Pinstrup-Andersen, Per & Shimokawa, Satoru, 2008. "Do poverty and poor health and nutrition increase the risk of armed conflict onset?," Food Policy, Elsevier, vol. 33(6), pages 513-520, December.
  6. Prema-chandra Athukorala & Sisira Jayasuriya, 2012. "Economic Policy Shifts in Sri Lanka: The Post-conflict Development Challenge," Departmental Working Papers 2012-15, The Australian National University, Arndt-Corden Department of Economics.
  7. Mamoon, Dawood & Akhtar, Sajjad & Hissam, Saadia, 2011. "Daily and monthly costs of terrorism on Pakistani exports," MPRA Paper 30926, University Library of Munich, Germany.
  8. Gardeazabal, Javier, 2010. "Methods for Measuring Aggregate Costs of Conflict," DFAEII Working Papers 2010-09, University of the Basque Country - Department of Foundations of Economic Analysis II.
  9. Kishor Sharma, 2006. "Development policy, inequity and civil war in Nepal," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(4), pages 553-569.
  10. Iyer, Lakshmi & Santos, Indhira, 2012. "Creating jobs in South Asia's conflict zones," Policy Research Working Paper Series 6104, The World Bank.
  11. Olaf J. de Groot & Tilman Brück & Carlos Bozzoli, 2009. "How Many Bucks in a Bang: On the Estimation of the Economic Costs of Conflict," Economics of Security Working Paper Series 21, DIW Berlin, German Institute for Economic Research.
  12. Muhammad, Nasir & Muhammad, Shahbaz, 2011. "War on Terror: Do Military Measures Matter? Empirical Analysis of Post 9/11 Period in Pakistan," MPRA Paper 35635, University Library of Munich, Germany, revised 29 Dec 2011.
  13. Kelegama, Saman, 2005. "Transforming Conflict with an Economic Dividend: The Sri Lankan Experience," Working Paper Series RP2005/48, World Institute for Development Economic Research (UNU-WIDER).
  14. World Bank, 2007. "Sri Lanka - Poverty Assessment : Engendering Growth with Equity, Opportunities and Challenges," World Bank Other Operational Studies 8050, The World Bank.
  15. Nicholas Staines, 2004. "Economic Performance Over the Conflict Cycle," IMF Working Papers 04/95, International Monetary Fund.
  16. Benedict J. Clements & Sanjeev Gupta & Shamit Chakravarti & Rina Bhattacharya, 2002. "Fiscal Consequences of Armed Conflict and Terrorism in Low- and Middle-Income Countries," IMF Working Papers 02/142, International Monetary Fund.
  17. World Bank, 2002. "Sri Lanka : Poverty Assessment," World Bank Other Operational Studies 15387, The World Bank.
  18. Bruno Frey, 2012. "Well-being and war," International Review of Economics, Springer, vol. 59(4), pages 363-375, December.
  19. Indra Tudawe, 2009. "Chronic Poverty and Development Policy in Sri Lanka: Overview Study," Working Papers id:2213, eSocialSciences.
  20. Fonseka, Daminda & Pinto, Brian & Prasad, Mona & Rowe, Francis, 2012. "Sri Lanka : from peace dividend to sustained growth acceleration," Policy Research Working Paper Series 6192, The World Bank.
  21. Tony Addison & S Mansoob Murshed, 2010. "From Conflict to Reconstruction: Reviving the Social Contract," Working Papers id:3206, eSocialSciences.
  22. Weerakoon, Dushni & Arunatilake, Nisha, 2011. "Macroeconomic policy for full and productive employment and decent work for all : Sri Lanka country study," ILO Working Papers 467844, International Labour Organization.

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