Civil War and Human Development: Impacts of Finance and Financial Infrastructure
In this paper interactions between finance, development and armed conflict are explored to demonstrate that financial factors are crucial in sustaining conflict-underdevelopment feedback loops. Military expenditure drains resources, financial instability leads to conflict (and vice versa), war retards the development of financial institutions/infrastructure, and interactions between finance and conflict are exacerbated by distributional struggles. Some of these feedback effects are captured within a two-stage model of war, finance and development and this is used as the basis for an empirical analysis. Econometrically, the model is estimated using panel estimation and two stage Probit least squares (2SPLS) binary dependent variable estimation techniques to control for simultaneity and heterogeneity. The results suggest that financial constraints and financial instability increase the chances of civil war directly and, via negative impacts on development, indirectly too.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daron Acemoglu & Davide Ticchi & Andrea Vindigni, 2009.
"Persistence of Civil Wars,"
NBER Working Papers
15378, National Bureau of Economic Research, Inc.
- Acemoglu, Daron & Ticchi, Davide & Vindigni, Andrea, 2009. "Persistence of Civil Wars," IZA Discussion Papers 4418, Institute for the Study of Labor (IZA).
- Acemoglu, Daron & Ticchi, Davide & Vindigni, Andrea, 2009. "Persistence of civil wars," POLIS Working Papers 130, Institute of Public Policy and Public Choice - POLIS.
- Acemoglu, Daron & Ticchi, Davide & Vindigni, Andrea, 2009. "Persistence of Civil Wars," Papers 09-06-2009, Princeton University, Research Program in Political Economy.
- Daron Acemoglu & Davide Ticchi & Andrea Vindigni, 2009. "Persistence of Civil Wars," EIEF Working Papers Series 0910, Einaudi Institute for Economics and Finance (EIEF), revised Sep 2009.
- Paul Collier & Anke Hoeffler & Dominic Rohner, 2006.
"Beyond Greed and Grievance: Feasibility and Civil War,"
CSAE Working Paper Series
2006-10, Centre for the Study of African Economies, University of Oxford.
- Paul Collier & Anke Hoeffler & Dominic Rohner, 2009. "Beyond greed and grievance: feasibility and civil war," Oxford Economic Papers, Oxford University Press, vol. 61(1), pages 1-27, January.
- M. Voorst & E. Nillesen & Philip Verwimp & E. Bulte & Robert Lensink & D. van Soest, 2010.
"Does conflict affect preferences? Results from field experiments in Burundi,"
Working Papers ECARES
2010_006, ULB -- Universite Libre de Bruxelles.
- Maarten Voors & Eleonora Nillesen & Philip Verwimp & Erwin Bulte & Robert Lensink & Daan van Soest, 2010. "Does Conflict affect Preferences? Results from Field Experiments in Burundi," HiCN Working Papers 71, Households in Conflict Network.
- Maarten Voors & Eleonora Nillesen & Philip Verwimp & Erwin Bulte & Robert Lensink & Daan van Soest, 2010. "Does Conflict affect Preferences? Results from Field Experiments in Burundi," Research Working Papers 21, MICROCON - A Micro Level Analysis of Violent Conflict.
When requesting a correction, please mention this item's handle: RePEc:cam:camdae:1127. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jake Dyer)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.