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The Impact of Armed Conflict on Economic Performance: Evidence from Rwanda

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  • Serneels, Pieter

    (University of East Anglia)

  • Verpoorten, Marijke

    (KU Leuven)

Abstract

Important gaps remain in the understanding of the economic consequences of civil war. Focusing on the conflict in Rwanda in the early 90s, and using micro data to carry out econometric analysis, this paper finds that households and localities that experienced more intense conflict are lagging behind in terms of consumption six years after the conflict, a finding that is robust to taking into account the endogeneity of violence. Significantly different returns to land and labour are observed between zones that experienced low and high intensity conflict which is consistent with on-going recovery. Distinguishing between civil war and genocide, the findings also provide evidence that these returns, and by implication the process of recovery, depend on the form of violence.

Suggested Citation

  • Serneels, Pieter & Verpoorten, Marijke, 2012. "The Impact of Armed Conflict on Economic Performance: Evidence from Rwanda," IZA Discussion Papers 6737, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6737
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    Cited by:

    1. Arias, María Alejandra & Ibáñez, Ana María & Zambrano, Andrés, 2019. "Agricultural production amid conflict: Separating the effects of conflict into shocks and uncertainty," World Development, Elsevier, vol. 119(C), pages 165-184.
    2. Guariso Andrea & Verpoorten Marijke, 2019. "Armed Conflict and Schooling in Rwanda: Digging Deeper," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 25(1), pages 1-40, February.
    3. Hoenig, Tillman, 2018. "The Effect of Conflict on Education: Evidence from Sierra Leone," MPRA Paper 85064, University Library of Munich, Germany.
    4. Hönig, Tillman, 2017. "The Impact of Peace: Evidence from Nigeria," MPRA Paper 83302, University Library of Munich, Germany.
    5. Giulia La Mattina, 2014. "Civil Conflict, Sex Ratio and Intimate Partner Violence in Rwanda," HiCN Working Papers 175, Households in Conflict Network.
    6. Bove, Vincenzo & Gavrilova, Evelina, 2014. "Income and Livelihoods in the War in Afghanistan," World Development, Elsevier, vol. 60(C), pages 113-131.
    7. Guariso, Andrea & Verpoorten, Marijke, 2015. "Aid, Trad and Post-War Recovery of the Rwandan Coffee Sector," 2015 Conference, August 9-14, 2015, Milan, Italy 211693, International Association of Agricultural Economists.
    8. Jorge Alvis Arrieta & Cristina Hidalgo González & María del Pilar Rodríguez Fernández, 2017. "Conflicto, posconflicto y capacidades de los gobiernos municipales en Colombia, 2002 - 2012," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 11(2), pages 249-285, December.
    9. Marijke Verpoorten, 2014. "Growth, poverty and inequality in Rwanda: a broad perspective," Working Papers of LICOS - Centre for Institutions and Economic Performance 490896, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    10. Olaf J. de Groot & Carlos Bozzoli & Tilman Bruck, 2015. "The Global Economic Burden of Violent Conflict," HiCN Working Papers 199, Households in Conflict Network.
    11. Giulia La Mattina, 2014. "Civil Conflict, Sex Ratio and Intimate Partner Violence in Rwanda," Working Papers 0114, University of South Florida, Department of Economics.
    12. Thorbecke, Erik, 2014. "The structural anatomy and institutional architecture of inclusive growth in sub-Saharan Africa," WIDER Working Paper Series 041, World Institute for Development Economic Research (UNU-WIDER).
    13. Ingelaere, Bert & Verpoorten, Marijke, 2016. "Inter-ethnic trust in the aftermath of mass violence: insights from large-N life histories," IOB Working Papers 2016.03, Universiteit Antwerpen, Institute of Development Policy (IOB).
    14. Gardeazabal, Javier & Vega Bayo, Ainhoa, 2016. "The Economic Cost of Armed Conflict," DFAEII Working Papers DFAE-II;2016-01, University of the Basque Country - Department of Foundations of Economic Analysis II.
    15. D'Souza, Anna, 2014. "Conflict and Trade: Implications for Agriculture and Food Security," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197200, International Agricultural Trade Research Consortium.
    16. Giacomo De Luca & Marijke Verpoorten, 2011. "From vice to virtue? Civil war and social capital in Uganda," LICOS Discussion Papers 29811, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

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    More about this item

    Keywords

    Rwanda; economic growth; human capital; civil war; genocide;
    All these keywords.

    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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