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Violent conflict and institutional change

Colin O'Reilly

Economics of Transition and Institutional Change, 2021, vol. 29, issue 2, 257-317

Abstract: Violent conflict such as civil war may influence institutional quality by changing the political equilibrium or by changing preferences and norms. This study presents empirical evidence that in some cases civil war deteriorates institutional quality. By applying the synthetic control method to 25 cases of civil war between 1960 and 2010, I construct the counterfactual path of institutional quality in the absence of civil war. The effects of civil war are heterogeneous, but for a substantial minority of cases civil war appears to deteriorate institutional quality. These findings have implications for post‐civil war economic recovery as well as long run economic development.

Date: 2021
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Handle: RePEc:wly:ectrin:v:29:y:2021:i:2:p:257-317