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Civil Wars and Economic Growth in Sub-Saharan Africa1

Author

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  • Kwabena Gyimah-Brempong
  • Marva E. Corley

Abstract

This paper uses panel data from a sample of Sub-Saharan African (SSA) countries over the 1960--96 period and both Instrumental Variables (IV) and dynamic panel data (DPD98) estimator to investigate the effect of the incidence and severity of civil war on the growth rate of per capita income. We find that both factors have a robust, negative and statistically significant effect on the growth rate of per capita income. We find that civil war affects the growth rate of income partly through reduced investment in physical capital. However, if one does not control for the correlation between civil war incidence and other growth factors, the estimated effect of civil war on economic growth is not robust. We are unable to find any significant relationship between the level of income and the incidence of civil war in SSA countries after controlling for other variables that are correlated with income levels. Copyright 2005, Oxford University Press.

Suggested Citation

  • Kwabena Gyimah-Brempong & Marva E. Corley, 2005. "Civil Wars and Economic Growth in Sub-Saharan Africa1," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(2), pages 270-311, June.
  • Handle: RePEc:oup:jafrec:v:14:y:2005:i:2:p:270-311
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    Citations

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    Cited by:

    1. Augustin Kwasi Fosu, 2013. "Growth of African Economies: Productivity, Policy Syndromes and the Importance of Institutions," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 22(4), pages 523-551, August.
    2. repec:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-017-0057-3 is not listed on IDEAS
    3. Ganegodage, K. Renuka & Rambaldi, Alicia N., 2014. "Economic consequences of war: Evidence from Sri Lanka," Journal of Asian Economics, Elsevier, vol. 30(C), pages 42-53.
    4. Gregory N. Price & Juliet U. Elu, 2014. "Does regional currency integration ameliorate global macroeconomic shocks in sub-Saharan Africa? The case of the 2008-2009 global financial crisis," Journal of Economic Studies, Emerald Group Publishing, vol. 41(5), pages 737-750, September.
    5. Carmignani, Fabrizio & Kler, Parvinder, 2016. "The geographical spillover of armed conflict in Sub-Saharan Africa," Economic Systems, Elsevier, vol. 40(1), pages 109-119.
    6. Juliet Elu & Gregory Price, 2013. "Ethnicity as a Barrier to Childhood and Adolescent Health Capital in Tanzania: Evidence from the Wage-Height Relationship," African Development Review, African Development Bank, vol. 25(1), pages 1-13.
    7. Eichengreen, Barry & Park, Donghyun & Shin, Kwanho, 2014. "Growth slowdowns redux," Japan and the World Economy, Elsevier, vol. 32(C), pages 65-84.
    8. Asiedu, Elizabeth & Lien, Donald, 2004. "Capital Controls and Foreign Direct Investment," World Development, Elsevier, vol. 32(3), pages 479-490, March.
    9. Frank L. BARTELS & Markus EICHER & Christopher BACHTROG & Gorazd REZONJA, 2009. "Foreign Direct Investment In Sub-Saharan Africa: Changing Location-Specific Advantages As Signals Of Competitiveness," The Developing Economies, Institute of Developing Economies, vol. 47(3), pages 244-278.
    10. Dunne J. Paul & Tian Nan, 2014. "Conflict Spillovers and Growth in Africa," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(4), pages 1-11, December.
    11. Bodea, Cristina & Elbadawi, Ibrahim A., 2008. "Political violence and economic growth," Policy Research Working Paper Series 4692, The World Bank.
    12. Dhaneshwar Ghura & Rina Bhattacharya, 2006. "Oil and Growth in the Republic of Congo," IMF Working Papers 06/185, International Monetary Fund.
    13. Augustin Kwasi Fosu, 2010. "Africa's Economic Future: Learning from the Past," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(1), pages 62-71, April.
    14. Omid Ranjbar & Chien-Chiang Lee & Tsangyao Chang & Mei-Ping Chen, 2014. "Income Convergence in African Countries: Evidence from a Stationary Test With Multiple Structural Breaks," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 371-391, September.

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