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Macroeconomic costs of conflict are generally very large, with GDP per capita about 28 percent lower ten years after conflict onset. This is overwhelmingly driven by private consumption, which falls by 25 percent ten years after conflict onset. Conflict is also associated with dramatic declines...
Persistent link: https://www.econbiz.de/10012252077
While there is an extensive literature examining the economic impact of conflict and political instability, surprisingly there have been few studies on their impact on the probability of banking crises. This paper therefore investigates whether rising conflict and political instability globally...
Persistent link: https://www.econbiz.de/10012251282
Using panel data for a large number of countries, we find that economic contractions are not followed by offsetting fast recoveries. Trend output lost is not regained, on average. Wars, crises, and other negative shocks lead to absolute divergence and lower long-run growth, whereas we find...
Persistent link: https://www.econbiz.de/10014400694
The paper finds a significant shift in the economic characteristics of civil conflicts during the1990s. Conflicts have become shorter but with more severe contractions and a stronger recovery of growth. The overall length and cost of the conflict cycle has probably declined. The stance of...
Persistent link: https://www.econbiz.de/10014399713
Post conflict aid is different from conventional development aid and has different effects on the recipient economy. The paper builds a theoretical model tailored around the main stylized facts of post conflict aid and traces the impact of different kinds of post-conflict aid on capital...
Persistent link: https://www.econbiz.de/10014399545
Do foreign-educated individuals play a role in promoting democracy in their home countries? Despite the large amount of … foster democracy in their home countries. Using a unique panel dataset on foreign students starting from 1950, I show that …, indeed, foreign-educated individuals promote democracy in their home country, but only if the foreign education is acquired …
Persistent link: https://www.econbiz.de/10014400353
Empirical evidence on the relationship between democracy and economic reforms is limited to few reforms, countries, and … years. This paper studies the impact of democracy on the adoption of economic reforms using a new dataset on reforms in the …. Democracy has a positive and significant impact on the adoption of economic reforms but there is no evidence that economic …
Persistent link: https://www.econbiz.de/10014402711
of democracy, is a significant predictor of government spending on education and health. The relationship is robust to … for democracy for a country is associated with approximately 1 percent more central government spending and 3 percent more …
Persistent link: https://www.econbiz.de/10014399591
sovereign debt is to maintain access to international capital markets. However, in a democracy, one generation may choose …
Persistent link: https://www.econbiz.de/10014401388
world during the period 1960?2010, using a dynamic panel estimation approach based on the system-generalized method of …
Persistent link: https://www.econbiz.de/10009706767