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Institutions and conflict

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  • Jha, Chandan Kumar
  • Panda, Bibhudutta
  • Sahu, Santosh Kumar

Abstract

The literature examining the effect of institutions on the spread of conflict remains scarce despite 100 civilians being killed in armed conflicts every day as per United Nations statistics. We employ the two-part model to study the effect of institutions on the spread of conflict in 190 countries from 2000 to 2016. We find that a better rule of law lowers the spread of conflict by increasing the cost of violence for perpetrators. Next, conditional on the conflict being present, countries with weaker corruption control experience a lower spread of conflict. Consistent with the “grease the wheels” hypothesis, this finding suggests that victimized groups use bribery to protect themselves against violence. Finally, press freedom reduces the spread of conflict by promoting government accountability, with the effect being higher in countries with greater internet penetration. Our findings highlight the roles of the government and civil society in preventing the loss of lives due to conflicts.

Suggested Citation

  • Jha, Chandan Kumar & Panda, Bibhudutta & Sahu, Santosh Kumar, 2022. "Institutions and conflict," Economic Modelling, Elsevier, vol. 113(C).
    • Handle: RePEc:eee:ecmode:v:113:y:2022:i:c:s0264999322001407
    DOI: 10.1016/j.econmod.2022.105894
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    2. Danish & Recep Ulucak, 2020. "The pathway toward pollution mitigation: Does institutional quality make a difference?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3571-3583, December.
    3. Cruz, Manuel David & Jha, Chandan Kumar & Kırşanlı, Fatih & Sedai, Ashish Kumar, 2023. "Corruption and FDI in natural resources: The role of economic downturn and crises," Economic Modelling, Elsevier, vol. 119(C).
    4. Priya, Pragati & Sharma, Chandan, 2023. "Reinforcing the effects of corruption and financial constraints on firm performance: Normal versus crisis period in developing economies," Economic Modelling, Elsevier, vol. 127(C).
    5. Bjørnskov, Christian & Freytag, Andreas & Gutmann, Jerg, 2022. "Coups and the dynamics of media freedom," Economic Modelling, Elsevier, vol. 116(C).
    6. Barnes, Stephen & Joshi, Swarup & Terrell, Dek, 2023. "Disasters and health insurance: Evidence from Louisiana," Economic Modelling, Elsevier, vol. 128(C).
    7. Kumar, Dushyant & Roy Chowdhury, Prabal, 2022. "Winning hearts and minds in conflict-ridden areas: Development as a signal of benevolence," Economic Modelling, Elsevier, vol. 117(C).

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    More about this item

    Keywords

    Conflict; Control of corruption; Press freedom; Rule of law; Governance; Institutions; Internet;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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