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On the Asymmetry Between Conflict and Development: Evidence from Sustainable Development Goals

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Listed:
  • Rabah Arezki
  • Hieu Nguyen

Abstract

This paper investigates the relationship between (internal) armed conflict and sustainable development. Using annual panel data on 192 countries from 2000 to 2024, we employ a variety of econometric techniques to trace the impulse responses between conflict fatalities and Sustainable Development Goal (SDG) performance in both directions. Results reveal a striking asymmetry: conflict shocks produce long-lasting adverse effects on SDG performance, while SDG performance shocks exert only transient effects on conflict intensity. This asymmetry persists across external and major conflict episodes, and is robust to alternative identification strategies. Our findings indicate that sustainable development is fundamentally contingent on prior achievement of peace.

Suggested Citation

  • Rabah Arezki & Hieu Nguyen, 2026. "On the Asymmetry Between Conflict and Development: Evidence from Sustainable Development Goals," CESifo Working Paper Series 12544, CESifo.
    • Handle: RePEc:ces:ceswps:_12544
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    Keywords

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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