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

Author

Listed:
  • 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. 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.
    2. Hönig, Tillman, 2017. "The Impact of Peace: Evidence from Nigeria," MPRA Paper 83302, University Library of Munich, Germany.
    3. Olaf J de Groot & Carlos Bozzoli & Anousheh Alamir & Tilman Brück, 2022. "The global economic burden of violent conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 59(2), pages 259-276, March.
    4. Bove, Vincenzo & Gavrilova, Evelina, 2014. "Income and Livelihoods in the War in Afghanistan," World Development, Elsevier, vol. 60(C), pages 113-131.
    5. Andrea Guariso & Marijke Verpoorten, 2018. "Aid, trade and the post-war recovery of the Rwandan coffee sector," Journal of Eastern African Studies, Taylor & Francis Journals, vol. 12(3), pages 552-574, July.
    6. 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.
    7. 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).
    8. Erik Thorbecke, 2014. "The Structural Anatomy and Institutional Architecture of Inclusive Growth in Sub-Saharan Africa," WIDER Working Paper Series wp-2014-041, World Institute for Development Economic Research (UNU-WIDER).
    9. 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.
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    11. Ana María Ibáñez & Julián Arteaga & Juan Camilo Cárdenas & Ana Arjona & Patricia Justino, 2019. "The effects of wartime institutions on households' ability to cope with shocks: Evidence for Colombia," WIDER Working Paper Series wp-2019-84, World Institute for Development Economic Research (UNU-WIDER).
    12. He Yin & Van Butsic & Johanna Buchner & Tobias Kuemmerle & Alexander V. Prishchepov & Matthias Baumann & Eugenia V. Bragina & Hovik Sayadyan & Volker C. Radeloff, 2019. "Agricultural abandonment and recultivation during and after the Chechen Wars in the northern Caucasus," HiCN Working Papers 294, Households in Conflict Network.
    13. Giulia La Mattina, 2014. "Civil Conflict, Sex Ratio and Intimate Partner Violence in Rwanda," HiCN Working Papers 175, Households in Conflict Network.
    14. 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.
    15. 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).
    16. Merle Kreibaum, 2014. "Their Suffering, Our Burden? How Congolese Refugees Affect the Ugandan Population," HiCN Working Papers 181, Households in Conflict Network.
    17. Gardeazabal, Javier & Vega Bayo, Ainhoa, 2016. "The Economic Cost of Armed Conflict," DFAEII Working Papers info:eu-repo/grantAgreeme, University of the Basque Country - Department of Foundations of Economic Analysis II.
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    19. Giacomo De Luca & Marijke Verpoorten, 2011. "From Vice to Virtue? Civil War and Social Capital in Uganda," HiCN Working Papers 111, Households in Conflict Network.
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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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