War! What Is It Good For? A Deep Determinants Analysis of the Cost of Interstate Conflict

Steven Yamarik (), Noel Johnson () and Ryan Compton

Peace Economics, Peace Science, and Public Policy, 2010, vol. 16, issue 1, 35

Abstract: Whatever gains may come from fighting wars, economic growth is not among them. We examine the long-run impact of interstate conflict on real GDP per capita for a cross section of countries between 1960 and 2000. We construct a fatality-weighted conflict variable that accounts for both the severity and endogeneity of individual confrontations. We include our conflict measure in a deep determinants income regression in which we control for trade, institutions and geography. We find that a standard deviation increase in fatality-weighted conflict over the period 1960 to 2000 results in an average decrease of about a tenth of a standard deviation in 2000 real GDP per capita.

Keywords: interstate conflict; development (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (7)

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DOI: 10.2202/1554-8597.1197

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