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Poverty and Civil War: Revisiting the evidence

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  • Djankov, Simeon
  • Reynal-Querol, Marta

Abstract

A popular "stylized fact" is that poverty is a main determinant of civil war: several scholars have interpreted the correlation between the two as evidence supporting this claim. In this paper, we find that the relationship between poverty and civil war is spurious, and is accounted for by historical phenomena that jointly determine income evolution and conflict. In particular, the statistical association between poverty, as proxied by income per capita, and civil wars disappears once we include country fixed effects. Also, using cross-section data for 1960-2005, we find that once historical variables like European settler mortality rates and the population density in 1500 are included in civil war regressions, poverty does not have an effect on civil wars. These results are confirmed using longer time series from 1825 to 2000.

Suggested Citation

  • Djankov, Simeon & Reynal-Querol, Marta, 2008. "Poverty and Civil War: Revisiting the evidence," CEPR Discussion Papers 6980, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:6980
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    References listed on IDEAS

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    1. José G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June.
    2. Daron Acemoglu & Simon Johnson & James A. Robinson & Pierre Yared, 2008. "Income and Democracy," American Economic Review, American Economic Association, vol. 98(3), pages 808-842, June.
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    4. Acemoglu, Daron & Johnson, Simon & Robinson, James A. & Yared, Pierre, 2009. "Reevaluating the modernization hypothesis," Journal of Monetary Economics, Elsevier, vol. 56(8), pages 1043-1058, November.
    5. Alberto Abadie, 2006. "Poverty, Political Freedom, and the Roots of Terrorism," American Economic Review, American Economic Association, vol. 96(2), pages 50-56, May.
    6. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1231-1294.
    7. Fearon, James D. & Laitin, David D., 2003. "Ethnicity, Insurgency, and Civil War," American Political Science Review, Cambridge University Press, vol. 97(1), pages 75-90, February.
    8. Joshua D. Angrist, 1991. "Instrumental Variables Estimation of Average Treatment Effects in Econometrics and Epidemiology," NBER Technical Working Papers 0115, National Bureau of Economic Research, Inc.
    9. Montalvo, Jose G. & Reynal-Querol, Marta, 2005. "Ethnic diversity and economic development," Journal of Development Economics, Elsevier, vol. 76(2), pages 293-323, April.
    10. José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic polarization, potential conflict and civil wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005.
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    More about this item

    Keywords

    Civil war; Income;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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