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

  • Yamarik Steven J


    (California State University at Long Beach)

  • Johnson Noel D


    (George Mason University)

  • Compton Ryan A


    (University of Manitoba)

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.

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Article provided by De Gruyter in its journal Peace Economics, Peace Science, and Public Policy.

Volume (Year): 16 (2010)
Issue (Month): 1 (September)
Pages: 1-35

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Handle: RePEc:bpj:pepspp:v:16:y:2010:i:1:n:8
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