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Growth, history, or institutions

Author

Listed:
  • Graziella Bertocchi

    (University of Modena and Reggio Emilia, CEPR, CHILD & IZA)

  • Andrea Guerzoni

    (University of Modena and Reggio Emilia)

Abstract

This article explores the empirical determinants of state fragility in sub-Saharan Africa over the 1992–2007 period. Our dataset includes those sub-Saharan countries for which we have information on the distribution by quintiles of the World Bank Country Policy and Institutional Assessment (CPIA) ratings. We evaluate the potential influence on fragility of a wide range of economic, institutional, and historical variables. Among economic factors, we consider per-capita GDP, both in levels and growth rates, investment, natural resources, and schooling. We also consider economic policy variables such as government expenditures, trade openness, and inflation. Demographic forces are accounted for through the fertility rate, life expectancy, and the youth bulge. Institutional factors are captured by measures of ethnic fractionalization, civil liberties, revolutions, and conflicts, as well as governance indicators. Moreover, we select historical variables that reflect the colonial experience of the region, namely the national identity of the colonizers and the political status during the colonial period. Finally, we account for geographic factors such as latitude, access to sea, and the presence of fragile neighbors. Our central findings is that institutions are the main determinants of fragility: even after controlling for reverse causality and omitted variable bias, the probability for a country to be fragile increases with restrictions of civil liberties and with the number of revolutions. Before controlling for endogeneity, economic factors such as per-capita GDP growth and investment show some explanatory power, but economic prosperity displays a contradictory net impact since growth reduces fragility while investment facilitates it. Moreover, instrumental variables estimates show that per-capita GDP growth is no longer a significant factor. Colonial variables display a marginal residual influence: after controlling for all other factors former colonies are actually associated with a lower probability of being fragile.

Suggested Citation

  • Graziella Bertocchi & Andrea Guerzoni, 2012. "Growth, history, or institutions," Journal of Peace Research, Peace Research Institute Oslo, vol. 49(6), pages 769-783, November.
  • Handle: RePEc:sae:joupea:v:49:y:2012:i:6:p:769-783
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    Citations

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    Cited by:

    1. Oasis Kodila-Tedika & Julius Agbor Agbor, 2014. "Religious Diversity and Economic Development in Sub-Saharan Africa: So Far So Good," Journal of African Development, African Finance and Economic Association (AFEA), vol. 16(1), pages 99-117.
    2. Graziella Bertocchi, 2016. "The legacies of slavery in and out of Africa," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    3. Amavilah, Voxi Heinrich, 2017. "The African origins of Euro-American development: Pins on an empirical roadmap," MPRA Paper 79925, University Library of Munich, Germany.
    4. Francesco Forte & Mihai Mutascu, 2015. "State fragility and fiscal decentralization in EU ex-communist countries in a public choice approach," Working Papers halshs-01101558, HAL.
    5. Kodila-Tedika, Oasis, 2013. "Poor Numbers: explanation of Africa's statistical tragedy
      [Pauvreté de chiffres : explication de la tragédie statistique africaine]
      ," MPRA Paper 43734, University Library of Munich, Germany.
    6. Oasis Kodila-Tedika & Remy Bolito-Losembe, 2014. "Corruption et Etats fragiles africains," African Development Review, African Development Bank, vol. 26(1), pages 50-58.
    7. Oasis Kodila-Tedika & Asongu Simplice, 2016. "State fragility, rent seeking and lobbying: evidence from African data," International Journal of Social Economics, Emerald Group Publishing, vol. 43(10), pages 1016-1030, October.
    8. Kodila-Tedika , Oasis, 2014. "Forget your gods: African evidence on the relation between state capacity and cognitive ability of leading politicians," European Economic Letters, European Economics Letters Group, vol. 3(1), pages 7-11.
    9. Graziella Bertocchi, 2016. "The Legacies of Slavery in and out of Africa," Department of Economics 0096, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    10. Chuku Chuku & Onye Kenneth, 2019. "Working Paper 307 - The Macroeconomics of State Fragility in Africa," Working Paper Series 2433, African Development Bank.

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