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The Cost of Failing States and the Limits to Sovereignty

Lisa Chauvet (), Paul Collier and Anke Hoeffler ()

No RP2007-30, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In this paper, we estimate the costs of state failure, both for the failing state itself and for its neighbours. In our analysis, the cost of failure arises from two distinct sources: organized violence due to the incapacity of the state to ensure its own citizens' security and low quality of regulation and public goods due to poor governance. To estimate the cost of failure, we proceed in two steps. First we estimate the annual loss of growth induced by state failure.

Keywords: Economic development; Failed states; Poverty; Social conflict (search for similar items in EconPapers)
Date: 2007
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