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Violent Conflict and Inequality

Author

Listed:
  • Cagatay Bircan
  • Tilman Brück
  • Marc Vothknecht

Abstract

This paper analyzes the distributive impacts of violent conflicts, which is in contrast to previous literature that has focused on the other direction. We use cross-country panel data for the time period 1960-2005 to estimate war-related changes in income inequality. Our results indicate rising levels of inequality during war and especially in the early period of post-war reconstruction. However, we find that this rise in income inequality is not permanent. While inequality peaks around five years after the end of a conflict, it declines again to pre-war levels within the end of the first post-war period. Lagged effects of conflict and only subsequent adjustments of redistributive policies in the period of post-war reconstruction seem to be valid explanations for these patterns of inequality. A series of alternative specifications confirms the main findings of the analysis.

Suggested Citation

  • Cagatay Bircan & Tilman Brück & Marc Vothknecht, 2010. "Violent Conflict and Inequality," Discussion Papers of DIW Berlin 1013, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1013
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Oloufade, Djoulassi K., 2012. "Trade Openness, Conflict Risk and Income Inequality," MPRA Paper 40702, University Library of Munich, Germany, revised Feb 2013.
    2. Tilman Brück & Patricia Justino & Charles Patrick MartinShields, 2017. "Conflict and development: Recent research advances and future agendas," WIDER Working Paper Series 178, World Institute for Development Economic Research (UNU-WIDER).
    3. Tilman Brück & Fernanda Llussá & José Tavares, 2010. "Perceptions, Expectations, and Entrepreneurship: The Role of Extreme Events," Discussion Papers of DIW Berlin 1093, DIW Berlin, German Institute for Economic Research.
    4. Marion Mercier & Rama Lionel Ngenzebuke & Hugues Philip Verwimp, 2017. "Violence exposure and deprivation: Evidence from the Burundi civil war," Working Papers DT/2017/14, DIAL (Développement, Institutions et Mondialisation).
    5. José María, Larrú, 2012. "La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica
      [Aid and inequality relationship. Evidence and theoretical justification]
      ," MPRA Paper 38857, University Library of Munich, Germany.
    6. De Groot, Olaf, 2014. "Foreign direct investment and welfare," Desarrollo Productivo 196, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Juan Carlos Muñoz-Mora, 2010. "Los Caminos del Café: Aproximación a la Relación entre el Conflicto Armado Rural y la Producción Cafetera Colombiana," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, vol. 28(63), pages 14-65, December.
    8. repec:asi:adprev:2017:p:281-298 is not listed on IDEAS
    9. UNDP Regional Bureau for Africa, "undated". "Inequalities and Conflict in Africa: An empirical investigation," UNDP Africa Policy Notes 2017-11, United Nations Development Programme, Regional Bureau for Africa.
    10. Brück, Tilman & Llussá, Fernanda & Tavares, José A., 2011. "Entrepreneurship: The role of extreme events," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 78-88.

    More about this item

    Keywords

    Conflict; Inequality; Reconstruction; Income Distribution;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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