External Threats, Political Stability and Fiscal Capacity
In most of the recent literature on state building, the signi cance of war relies on the assumption that interstate disputes and civil wars are two independent types of con icts, with opposing effects on the development of state capacity; while external con icts imply unity and consensus, internal wars are divisive and destructive. This paper contributes to this literature by developing an alternative explanation based on the idea that the actors in these two types of con icts might be linked. A rst result shows that the strength of this link determines whether con icts fought against internal adversaries (i.e. civil wars) or external enemies (i.e. interstate disputes) complement or substitute each other, leading to larger or smaller investments in scal capacity. The theory also predicts that political stability plays a non-trivial role in channelling the relation between both kinds of con icts and scal capacity. A second result shows that while less political stability translates into less scal capacity, more stability does not automatically imply more state-building. The exact relation depends on how cohesive institutions are. A novel mechanism through which more political stability might imply less state-building is proposed. Finally, I show that correlations in cross-country data are consistent with the theory.
|Date of creation:||02 Mar 2017|
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:col:000416:015496. 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: (Mayerly Galindo Rodriguez)
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.