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On The Conflict-Poverty Nexus




We develop a model to explore the inter-relationships between conflict and economic activity. We construct a simple two-period model where consumption and investment decisions are made in the presence of governments who consider initiating diversionary conflict to raise their chances of remaining in power. Economies with selfish leaders and lower gains from capital formation may fall prey to engaging in avoidable conflicts thereby lowering investment and hence future growth. Using panel data for over 152 countries from 1950 to 2000, we find evidence for conflict lowering economic growth and, after conditioning on the initial conditions of geography, private, public, and human capital investment, lower growth raising the likelihood of conflict. These results are broadly consistent with our model. Copyright 2006 Blackwell Publishing Ltd.

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  • S. Brock Blomberg & Gregory D. Hess & Siddharth Thacker, 2006. "On The Conflict-Poverty Nexus," Economics and Politics, Wiley Blackwell, vol. 18(3), pages 237-267, November.
  • Handle: RePEc:bla:ecopol:v:18:y:2006:i:3:p:237-267

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    References listed on IDEAS

    1. Londregan, J. & Poole, K.T., 1991. "The Seizure of Executive Power and Economic Growth: Some Additional Evidence," GSIA Working Papers 1991-6, Carnegie Mellon University, Tepper School of Business.
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    Cited by:

    1. Vadlamannati, Krishna Chaitanya, 2008. "Socioeconomic, Institutional & Political Determinants Of Human Rights Abuses: A Subnational Study Of India, 1993 – 2002," MPRA Paper 10142, University Library of Munich, Germany.
    2. Yamarik Steven J & Johnson Noel D & Compton Ryan A, 2010. "War! What Is It Good For? A Deep Determinants Analysis of the Cost of Interstate Conflict," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(1), pages 1-35, September.
    3. William F. Shughart, 2011. "Terrorism in Rational Choice Perspective," Chapters,in: The Handbook on the Political Economy of War, chapter 8 Edward Elgar Publishing.

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