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Conflict, Political Structure and Economic Growth in Dual-Population Lands

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Abstract

The optimal consumption growth rate for a group in a strictly political federation in a dual-population land is lower than that under partition if the group is wealthier and has a lower population growth rate than its counterpart. Even in such circumstances the group may economically benefit from joining a federation that facilitates technological transfer as long as the group’s initial technology is inferior to the hybrid. The group’s optimal consumption growth rate during a civil war is larger than those under partition and a strictly political federation if its rival’s warfare is mainly aimed at inflicting casualties.

Suggested Citation

  • Levy, Amnon & Faria, João Ricardo, 2002. "Conflict, Political Structure and Economic Growth in Dual-Population Lands," Economics Working Papers wp02-19, School of Economics, University of Wollongong, NSW, Australia.
  • Handle: RePEc:uow:depec1:wp02-19
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    File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012139.pdf
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    References listed on IDEAS

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    1. David H. Bearce & Eric O'N. Fisher, 2002. "Economic Geography, Trade, and War," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(3), pages 365-393, June.
    2. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-1288, December.
    3. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
    4. Garfinkel, Michelle R, 1994. "Domestic Politics and International Conflict," American Economic Review, American Economic Association, vol. 84(5), pages 1294-1309, December.
    5. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-380, December.
    6. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-573, October.
    7. Paul Collier & Anke Hoeffler, 2004. "Greed and grievance in civil war," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 563-595, October.
    8. Gregory D. Hess & Athanasios Orphanides, 2001. "War and Democracy," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 776-810, August.
    9. S. Brock Blomberg & Gregory D. Hess, 2002. "The Temporal Links between Conflict and Economic Activity," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 74-90, February.
    10. Hess, Gregory D & Orphanides, Athanasios, 1995. "War Politics: An Economic, Rational-Voter Framework," American Economic Review, American Economic Association, vol. 85(4), pages 828-846, September.
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    More about this item

    Keywords

    conflict; political structure; economic growth;

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J19 - Labor and Demographic Economics - - Demographic Economics - - - Other
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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