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Economic Growth and Recovery After Civil Wars

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  • Gil-Alana Luis A.

    () (Faculty of Economics and ICS, University of Navarra, Pamplona, Spain)

  • Singh Prakarsh

    (Amherst College, Department of Economics, USA)

Abstract

Using a fractional integration approach, we find that developing countries recover their economic growth faster than developed countries in response to a shock. The main finding is that longer civil conflicts are associated with a faster recovery process. To investigate deeper on this issue, we explore correlations with components of GDP. Higher government spending is correlated with faster recoveries post longer conflicts and higher consumption and investment are linked to faster recoveries following shorter conflicts.

Suggested Citation

  • Gil-Alana Luis A. & Singh Prakarsh, 2014. "Economic Growth and Recovery After Civil Wars," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(4), pages 1-10, December.
  • Handle: RePEc:bpj:pepspp:v:20:y:2014:i:4:p:10:n:2
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    References listed on IDEAS

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    1. Malcolm Knight & Norman Loayza & Delano Villanueva, 1996. "The Peace Dividend: Military Spending Cuts and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 1-37, March.
    2. John Bellows & Edward Miguel, 2006. "War and Institutions: New Evidence from Sierra Leone," American Economic Review, American Economic Association, vol. 96(2), pages 394-399, May.
    3. James C. Murdoch & Todd Sandler, 2002. "Economic Growth, Civil Wars, and Spatial Spillovers," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 91-110, February.
    4. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1203-1250.
    5. repec:cup:apsrev:v:103:y:2009:i:02:p:231-247_09 is not listed on IDEAS
    6. James Murdoch & Todd Sandler, 2002. "Civil wars and economic growth: A regional comparison," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(6), pages 451-464.
    7. Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
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