The Economic Consequences of Conflict in Sub-Saharan Africa

Xiangming Fang, Siddharth Kothari, Cameron McLoughlin () and Mustafa Yenice

No 2020/221, IMF Working Papers from International Monetary Fund

Abstract: Sub-Saharan Africa has been marred by conflicts during the past several decades. While the intensity of conflicts in recent years is lower than that observed in the 1990s, the region remains prone to conflicts, with around 30 percent of the countries affected in 2019. In addition to immeasurable human suffering, conflicts impose large economic costs. On average, annual growth in countries in intense conflicts is about 2.5 percentage points lower, and the cumulative impact on per capita GDP increases over time. Furthermore, conflicts pose significant strains on countries’ public finances, lowering revenue, raising military spending, and shifting resources away from development and social spending.

Keywords: conflict; growth; fiscal policy; military spending; sub-Saharan Africa; sub-Saharan Africa country; partner country growth; per-capita GDP; Sahel region; growth rate; public finances; No. of country; conflict country; civil war; time effect; country classification; Defense spending; Capital spending; Total expenditures; Africa; Middle East; East Africa; North Africa (search for similar items in EconPapers)
Pages: 29
Date: 2020-10-30
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Citations: View citations in EconPapers (8)

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