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The Causes and Consequences of Development Clusters: State Capacity, Peace, and Income


  • Timothy Besley

    () (London School of Economics, London WC2A 2AE, United Kingdom
    Canadian Institute for Advanced Research, Toronto M5G 1Z8, Ontario, Canada)

  • Torsten Persson

    () (Canadian Institute for Advanced Research, Toronto M5G 1Z8, Ontario, Canada
    Institute for International Economic Studies, Stockholm University, Stockholm SE-106 91, Sweden)


Three important aspects of development—per capita income, state capabilities, and (the absence of) political violence—are correlated with each other at the country level. This article discusses the causes of such development clusters and highlights two explanations: common economic, political, and social drivers and complementarities (two-way positive feedbacks). It also draws out preliminary policy implications of these patterns of development and proposes topics for further research.

Suggested Citation

  • Timothy Besley & Torsten Persson, 2014. "The Causes and Consequences of Development Clusters: State Capacity, Peace, and Income," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 927-949, August.
  • Handle: RePEc:anr:reveco:v:6:y:2014:p:927-949

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    Cited by:

    1. repec:eee:reecon:v:71:y:2017:i:2:p:356-371 is not listed on IDEAS
    2. Cheong, Juyoung & Won Kwak, Do & Yuan, Haishan, 2017. "Trade to aid: EU's temporary tariff waivers for flood-hit Pakistan," Journal of Development Economics, Elsevier, vol. 125(C), pages 70-88.
    3. Dunne J. Paul & Tian Nan, 2017. "Working Paper 274 - Conflict and Fragile States in Africa," Working Paper Series 2391, African Development Bank.
    4. Jean Guillaume Forand, 2017. "Client Service and the Growth of Government," Working Papers 1704, University of Waterloo, Department of Economics, revised Sep 2017.
    5. Besley, Timothy & Ghatak, Maitreesh, 2017. "Public–private partnerships for the provision of public goods: Theory and an application to NGOs," Research in Economics, Elsevier, vol. 71(2), pages 356-371.

    More about this item


    income per capita; state effectiveness; institutions; political violence;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth


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