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War! What Is It Good For? A Deep Determinants Analysis of the Cost of Interstate Conflict

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  • Yamarik Steven J

    (California State University at Long Beach)

  • Johnson Noel D

    (George Mason University)

  • Compton Ryan A

    (University of Manitoba)

Abstract

Whatever gains may come from fighting wars, economic growth is not among them. We examine the long-run impact of interstate conflict on real GDP per capita for a cross section of countries between 1960 and 2000. We construct a fatality-weighted conflict variable that accounts for both the severity and endogeneity of individual confrontations. We include our conflict measure in a deep determinants income regression in which we control for trade, institutions and geography. We find that a standard deviation increase in fatality-weighted conflict over the period 1960 to 2000 results in an average decrease of about a tenth of a standard deviation in 2000 real GDP per capita.

Suggested Citation

  • 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.
    • Handle: RePEc:bpj:pepspp:v:16:y:2010:i:1:n:8
    DOI: 10.2202/1554-8597.1197
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    3. Ryan A. Compton & Bryan Paterson, 2016. "Military Spending and Growth: The Role of Institutions," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 301-322, June.
    4. Ellyn Creasey & Ahmed S. Rahman & Katherine A. Smith, 2012. "Nation Building and Economic Growth," American Economic Review, American Economic Association, vol. 102(3), pages 278-282, May.
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